Scalp Trade

A short term trade that lasts 3-5 bars on the selected time frame (i.e. 3-5 hours on the hourly, or 9-15 minutes based on a 3-minute time frame). The position aims at a minimum price target that equals one or two times the risk; and, it’s managed with a tight trailing stop. The risk, or stop, is determined by the size of the signal bar. The trade’s intention is to take advantage of a signal followed by a leg of the dominant trend; in Elliott wave terms waves 1, 3, 5 in an impulse, A or C in a correction. There is no intention to sit through any correction that moves against the trade.