6/7/23, 12:10 AM SCALPING & PIVOT STRATEGY | The Prop Trader

The Prop Trader <

https://theproptrader.co/>
ICT Concepts

Oct 04 2021 <

https://theproptrader.co/2021/10/04/pivot-scalping-
strategy/>

Protected: SCALPING &

PIVOT STRATEGY
CHART SETUP
The 2m/5m/10m scalping strategy signals a trade if price closes outside
the Bollinger Bands on all 3 timeframes and fails to breakout (FBO). The
FBO should preferable occur after a BB Squeeze.
The following chart time-frames are required:
2-minute for execution (left)
5-minute for con uence (top-right)
10-minute for con uence (bottom right)
fl
fl
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With the following Indicators:

Bollinger Bands (2,20,close)
EMA(8,close)
EMA(21,close)

A FBO would be indicated either by a hammer, shooting star or a pin bar

with a long tail.
The entry would be 1-tick above/below the FBO candle with a stop placed
1-tick above / below.
TP can be taken at 2R or trailed.
The 8 EMA and 21 EMA are used on all timeframes for trend analysis.
Additional higher risk trades can be taken if the price closes outside the
Bollinger Bands on the 2m or 5m and price is at the 8 EMA or 21 EMA
support / resistance on the 10m.
This is a short-term day-trading scalping strategy that has the following
objectives:
Pro table 4 out of 5 trading days per week
Can be executed with relative ease
fi
>= 2.5 SQN100 score
Traded on EURUSD FX Sport & ES CME Futures (not CFD)
Can be executed any time during LD / NY Session crossover
Ideally average >= 2R per day

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There are several setups which are considered here. Most overlap in their
rules:
FVBO*
FVBO + Troll Top
FVBO + Troll Bottom
FBOR**
FBOR + Double Bottom
FBOR + Double Top
FBOR + Troll Bottom
FBOR + Troll Top
FVBO + FBOR
* Failed Volatility Breakout, ** Failed Breakout Retest
More information on the FVBO Strategy can be found here:
https://theproptrader.co/2021/10/04/fvbo-strategy <
https://theproptrader.co/2021/10/04/fvbo-strategy>
ADDING PIVOTS FOR CONFLUENCE
Add the Custom TradingView Multi-Pivot Zone Indicator to a 15 mins
chart:
Create a Custom Time Frame on TradingView (720 Minutes / 12
Hour)
Go to Settings of Indicator
Check / Tick “Show Half Lines”
Select Time Frame and select 12 hours

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If you have set-up the indicator as explained above using the 12 hour chart,
it should look like the above.
MR = Major Resistance
MS = Major Support
If price is between MS1 and MR1 it is considered to be a Neutral Mean
Reversion Zone. This should re ect the Overnight High and Low when
using 12 hour pivots. If MS1 or MR1 hold, there is a high probability the
fl
price will revert to the Pivot.
We want to be able to establish if the market is in a Neutral state or some
trending state.
With this strategy, the market usually follows a step-by-step process:
Bearish
1. Neutral
2. Bearish Breakout
3. Confirmed Bearish Breakout
4. Extended Bearish Breakout
5. New Neutral
Bullish
1. Neutral
2. Bullish Breakout
3. Confirmed Bullish Breakout
4. Extended Bullish Breakout

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5. New Neutral
Bearish Setup
Once you break out of the Neutral Zone, you will want to get confirmation
that a trend is in progress where multiple tests must pass. Each Test could
be an area to add to your trade:
Test 1: Close below MS1 – ½ signals a bearish breakout. Sell-Stop below
Low until filled**
Test 2: Hold time-filter below MS2 (T / 2) the bar. In the case of trading
from a 15-minute chart, T = 15 minutes / 2 = 7.5 minutes. There may be a
reason to use 1-minute charts when checking if time-filter holds. Sell-Stop
below Low until filled. This confirms the bearish breakout.
Test 3: Close below MS3 – ½ extends the bearish trend. Sell-Stop below
Low until filled.
Test 4: Hold time-filter below MS4 (T / 2) the bar.Confirms trend extension.
Sell-Stop below low until filled.
**If price hits the pivot, then the trade-setup resets.
Bullish Setup
Same but in reverse:
Test 1: Close above MR1 + ½ signals a bullish breakout. Buy-Stop above
High until filled*
Test 2: Hold time-filter above MR2 (T / 2) the bar. In the case of trading
from a 15-minute chart, T = 15 minutes / 2 = 7.5 minutes. There may be a
reason to use 1-minute charts when checking if time-filter holds. confirms
the bullish breakout. Buy-Stop above High until filled.
Test 3: Close below MR3 – ½ Signals Bullish Trend Extension. Buy-Stop
above High until filled.
Test 4: Hold time-filter above MR4 (T / 2) the bar. Confirms Bullish trend
extension. Buy-Stop above High until filled.
**If price reverts to the Pivot, then the setup is reset.
If a Test fails then you may take the trade back to the Pivot as before.

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Watch for confluence of the Pivot Levels with the Scalping Strategy rules.
At given pivot levels wait for FBOR / FVBO setups.
ADDING TRADING SESSIONS
Add the custom TradingView Sessions Boxes for TY, LD and NY Opening
Ranges for confluence with Pivots:

Indicators required: Bollinger Bands (20,2), 8 EMA, 21 EMA, Multi-Pivot

Zones (custom)
APPENDIX
https://drive.google.com/drive/folders/1J5QkeO0M0RvCUa3bMnfcX9
xmhRgny7PP?usp=sharing <
https://drive.google.com/drive/folders/1J5QkeO0M0RvCUa3bMnfcX9
xmhRgny7PP?usp=sharing>

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