Today we are trading and scalping the DAX 40 (DE40) on the 15-minute time frame. We are using the scalping breakout London session strategy. We can see that an hour before the London market opened we had our break-out candle which took out the previous points of support set during the Asian Market session.
I have put a green box around the break-out candle. This impulsive breakout candle was our short entry signal. The candle itself broke through the support levels around 12648 and closed slightly below the deepest wick (depending on which exchange you were looking at)
To have a successful short entry signal, we need to see the impulsive breakout candle close very close to its low. We also need to see the top part of the candle sit through the moving average. Once we see this, our signal is activated.
Now, how do we manage to catch these signals? Like I have said in previous posts, we need to watch the charts an hour before the London market opens up because the breakout may come early as it did today. The candles do not necessarily have to break out of the Asian zone as the London market opens up. Market makers and institutions can decide to break out of any range and at any point. So, rather make sure you are awake and in front of the charts an hour before the London session begins. This will ensure that you are around to catch any possible moves.
We entered into a short position as the breakout candle closed. We used a market order and placed our targets at around 12548 ensuring we can get a risk to reward of one to two.
Our 10 pip stop loss was set above the top of the breakout candle at 12680.
If you have the time to scalp the DAX on the 15-minute chart, then my advice would be to give this strategy a chance. Before using it on a live account, make sure to back-test it thoroughly to increase and develop confidence and comfortability.
Scalping is a different beast completely when comparing it to swing trading. Those of you that follow our youtube channel know that I enjoy doing both of these. I am primarily a swing trader and I enjoy using order blocks on the 4-hour time frame for three of the major currency pairs.
However, when I have the time to sit in front of the charts, I do enjoy scalping the DAX on the 15-minute chart during the London and Newyork Market sessions. We tend to see a lot of volatility around the opening of these sessions and this volatility can be a day trader’s best friend. This is what we need to make money and secure profits.
Prediction Analysis Overview Table
| Analysis Overview Information | Prediction Analysis information |
| On what market is this position based (Forex, Stocks, Crypto, Indices, or Commodities)? | Forex |
| What is the trading position identifier (Name and/or Symbol)? | DAX 40 |
| Is this a Short or Long Position? | Long |
| Would this be considered a Short Term, Medium Term, or Long Term trade? | Medium Term |
| As a Short, Medium, or Long Term trade, which best describes the position (Scalping, Day Trading, Swing Trading, or Position Trading)? | Swing Trading |
| What Time Frame chart is the position based on (1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, Daily, or Weekly chart)? | 15-Minute |
| Depending on the asset, how much do you expect it to move in price or percentage? | From Entry to Target – 0.7% |
| What ratio of risk to reward is this trade/position? Choose your appropriate target(s) | Approximately 2 to 1 Target 2 N/A Target 3 N/A |
| What were the technical analysis tools used? Tick the appropriate boxes; | ☐ Chart Patterns ☐ Indicators ☒ Price Action ☒ Support & Resistance ☐ Trendlines |
| From the technical analysis tools and indicators provided, tick the appropriate boxes for the tools and indicators used to analyze the position; | ☐ Ascending Triangle, ☐ Bollinger Bands, ☐ Candlesticks, ☐ Channel, ☐ Cup & Handle, ☐ Descending Triangle, ☐ Double Bottom, ☐ Double Top, ☐ EMA, ☐ Fibonacci Retracement, ☐ Flag, ☐ Head & Shoulders, ☒ MA, ☐ MACD, ☐ Order Blocks, ☐ Pennant, ☐ Rounding Top Or Bottom, ☐ RSI, ☐ Symmetrical Triangle, ☐ Volume, ☐ Wedge |
Disclaimer: The FSP probability score is derived from adding and subtracting the positive and negative aspects of the position and is not a definitive sign of how the trade will play out. FSP is not in any way a financial advisor
