The 5 Minute Scalping Strategy (That Actually Works)

Every morning at 935 a.m. The market provides an opportunity and if you know how to read it You can become a profitable trader fast Most traders are drowning in complexity multiple time frames dozens of indicators and conflicting signals everywhere They've been told that this is what it takes to win But here is what all profitable traders discover all that complexity is just noise and underneath it all there is one simple pattern On one time frame at one specific time every single day I use this strategy to grow an account from nine thousand dollars to a hundred and thirty four thousand dollars in less than 90 days And I'm about to show you exactly how and to prove this works I'll walk you through recent trade examples and Show you a one month back test of the strategy and by the end of this video You'll have a complete system for finding winning trades and under 90 minutes a day That way you can finally become a profitable trader. There are three steps to this system first marking your levels Next finding your entry and finally exiting your trade at the perfect time. That's it Now I'm going to break these three steps down and then go over some live examples That way you have confidence when you're out there trading this strategy on your own But first you need to understand what each step actually is Let's hop right into step number one, which is marking your levels at 935 a.m Eastern Standard Time Something happens that most traders completely miss the first five-minute candle of the day closes and when it does it leaves behind two Critical levels you open your chart any market works whether it's futures stocks crypto or Forex This pattern is universal and then you just mark out two levels the high of that candle and the low of that That is literally it two lines on a chart nothing else no indicators cluttering your screen No multiple time frames to watch just two levels that matter more than anything else You'll see all day long now why these two specific levels what makes them so powerful? Well, I'll show you in the live examples But for now just know this these levels are where the real money gets made that number two is to find your entry Now comes the waiting it the market is gonna tell you which direction that it wants to go You're not guessing you're not predicting You're just watching for one specific signal a five-minute candle that closes completely outside of your range not a wick not a touch a full-body candle closing beyond your high or Below your low and when that happens the market has spoken But you're still not entering yet because here is what separates the winners from everyone else you wait for a retest After that breakout candle the market almost always comes back it retest the level that it just broke Most traders are gonna see this in panic because they think this means the trade is failing or they think they missed it But you know better the retest is your entry point It's the market giving you a second chance at a better price and letting the market prove that this isn't another fake-out And if you could avoid the fake-out trades that are causing you to be unprofitable My guess is your trading career would look a lot different wouldn't it? So what exactly counts as a valid retest? And this is critical because there are fake retests that will stop you out immediately and there are real retests that lead to winning trades The difference between the two can make or break your account. Don't worry I'm going to show you multiple real examples in a moment That way you can see exactly what a valid retest looks like and how to spot the fake-outs before they hurt you But here's the rule the candle needs to trade back into your range without Closing inside of it and when you see this you enter because this is a valid retest but entering trades alone doesn't pay you Exiting at the right time does and that is where step number three comes in now This is the most important part and everything else that I just told you makes sense in theory But execution is where most traders fail So I'm going to take you to a live chart right now and show you exactly how to execute each step over multiple examples and More importantly, I'm going to show you the three most common mistakes that traders make using this strategy That way you never make them yourself and in each one I'm going to point out a different mistake that traders commonly make Using this strategy because here's the truth. The reason that you're not consistently profitable yet isn't discipline and it's definitely not psychology It's that you've been taught to over complicate something that should be simple But by the time we're done here, you will know exactly how to trade with zero emotion zero guesswork and zero hesitation Let's get started with step number one, which is marking our levels. So as you can see here, we are at 9 30 a.m We're on the five minute time frame to get here You click this button right here on trading view and once this candle that starts at 9 30 and then ends at 9 35 because we're on a five minute time frame once this ends We are good to go ahead and mark the high and the low to do this we're gonna go over here to the left on trading view and we're gonna select the trendline tool and then you can just mark out The high and mark out the low and those are your two trading levels And while everyone else is trying to predict what the markets going to do We just simply wait and react to it and this takes less than 30 seconds You literally just get to your desk right at 9 35 a.m. And mark the high in the low You don't need to spend hours trying to figure out what the market might do But this brings us to step number two, which is our trade entry So remember we're just gonna wait for a five minute candle closure outside of the range And as you can see we get that pretty much immediately a lot of times with this strategy You're gonna find the best trades very fast But still this is where 90% of struggling traders will fail They chase this first move and go ahead and FOMO into the market We don't but instead we're going to wait for a retest now what constitutes of a valid retest? Well, first off we want to see the market trade back into our level and after we see it trade back into the level Like you see here what we want to see is that same candle that hit the level close back outside of it This shows that buyers are stepping in and pushing the market back out of this range This is a signal that the market is likely to go higher So I want you to think of this like a slingshot when the market pushes outside of the range here It's like we're pulling back the slingshot and right when we get back here to this retest This is when the market is fully ready to explode and as soon as it hits this level and closes above it That's like letting the slingshot go and the markets likely to move aggressively to the upside notice how we're not using anything Complicated or trying to interpret ten different conflicting signals, but instead we're just watching price action These rules are 100% mechanical There is literally no room for emotion or hesitation when you have a system like this So as soon as we've got this retest candle here, we want to enter the trade immediately now This brings us to step number three, which is finding our target Which is where we want to take profit on the trade and our stop-loss Which is where we will say the trade is invalid since we broke out of the high and retested it This shows us buyers are in control, which means we want to get into a long position You go over here to the left on trading view Click the long position tool and this is going to help us map out our trade on this candle closure That is where you would enter the trade now this tool allows you to place your stop-loss point and Your target and help you understand what your risk to reward is and map out your trade before you even get started first We're gonna place our stop-loss to make sure we have good risk management and we're gonna do that at the midpoint of the range In order to find the midpoint we can go over here to the left on trading view click this button Click the fib retracement tool and we just want to draw this from the high of that first five-minute candle down it to the low Now to get your fib tool looking like mine. You want to have your settings look like this The most important part is that you only have one zero and point five checked This puts a line right at the 50% or the midpoint of the range So we could go ahead and drag out this box right here And this shows us that our stop-loss will be right under that midpoint of the range And if the market gets there during our trade, we're happy to get out for a very small and controlled loss Now when it comes to our target, we're not trying to hit home runs We want to get consistent base hits, but here's the thing for every $1 We risk we want to make $2 now to do this We're gonna go over here to this long position tool And we're gonna drag out the target to two until this risk reward says two once you've got this set You can enter the trade to do this You go on trading view and you just click the buy button because remember we're going in a long once you click this you can just Execute and you drag your stop-loss down just like this and then you drag up your take profit like this as you can see We have six hundred and twenty five dollars at risk to make twelve hundred and fifty dollars and at this time you just sit back and let the market do the heavy lifting for you and as you can see we Hit our target pretty quickly. This only took about six candles or 30 minutes to make $1,200 Now I want to be clear Waiting for this retest is key because if you would have just fomo'd in on this candle right here You would have sacrificed almost half your profits and you're gonna see just how much of a difference this makes when we go over the Back test later. So now that we've walked through one live execution and you understand how important it is to avoid FOMO we're gonna hop into the second of our three examples and this is a perfect example of another common mistake that traders make using this Strategy and understanding this mistake is the difference between a high probability setup and a coin flip So we've got the first five minute candles high and low marked out Now we're gonna wait for our break outside of the range as you can see right here the market traded outside of the range But we didn't close outside of it So that would not be a valid break and then finally the market does close outside of the range So now we want to just wait for the retest and as you can see the market trades back into our level But we close inside of it and this is where a lot of traders will go wrong They'll tell themselves that this still counts or they don't want to miss out on a trade So they'll just execute even though we didn't get our valid retest candle But here's the thing as long as you wait You will likely still get a setup on this trade as you can see here The market does trade higher up into the range and then what happens the market trades back outside of the range and we end up Getting our retest So if you just wait a lot of times the market is going to reward you now since this is a bearish Example and we're breaking through the low You'd want to go over here and select the short position tool and you're good to execute it right here on this candle To find the midpoint of the range we're gonna select that fib tool and we're gonna drag our stop just above that level and then we want to target our Fixed two-to-one risk to reward. It's the same thing every single day Boring and repeatable and as you can see the market ran pretty much straight to our target and on this trade which took about an hour We netted forty four hundred dollars in profit Now, let's hop right into example number three and notice down here You'll see that we're trading gold in the last examples. We traded Nasdaq and the S&P 500 So as I told you earlier this strategy works across all markets and all of these are very recent Examples and the mistake that could have been made in this example is where most traders leave a tremendous amount of money on the table So we've got our high low and midpoint of this first five-minute candle marked out Next we want to wait for our candle closure and last we want to wait for our retest since we broke out of the high We're going to place a long position with our two-to-one risk to reward and at this time You're good to enter the trade now Something is a little different about this setup If we watch the market starts to trade right in your direction But then what happens the market starts to chop now for a lot of you This is probably a painfully memorable experience and in this chop is where a lot of you guys robbed yourself of being a profitable trader Do you have the patience to execute your strategy that you trade currently and stick to it? My guess is probably not but after you see the results of this strategy and you test it for yourself You'll have no problem letting the system do the heavy lifting for you As you can see this trade did take a little bit longer to get to the target until about 1 p.m You entered at around 940 So this is something that a lot of traders make as a mistake is just exiting because they see choppy conditions But the nice thing about this strategy is you have a clear repeatable system that helps you avoid that now It's time for the back test But before we get into this I need you to pause your screen and read this important disclaimer After testing this on a little over a month's worth of price action We got 20 trades 70% of them were winners and we netted $10,000 using one contract And during that time we went to a max drawdown of $1,000 But look at how important it is to wait for the retest We had a 70% win rate when we waited but a 33% win rate when we didn't now you have the strategy But when the market opens and real money is on the line if you're like most traders doubt will creep in That's why I trade live sharing my screen and executions with my students at market open You see the setups in real time get your trades reviewed and never have to trade on your own like the link That's in the top of the description to join It'll be right next to the word mentorship If you want a quick cheat sheet for this strategy, you can go ahead and screenshot this this has all three steps and if this video is helpful to you make sure to subscribe to the channel because I'll be putting Out more content on this strategy and other ways you can make it even better next week Also, there is a beginner's guide that I made and put here on YouTube for free But you can click somewhere on your screen right now and watch it goes over all of the basics of trading the strategy The psychology and everything in between that way you have everything you need to get started on the right foot Thank you guys for watching and I'll see you in the next video