Infinity Scalper – Stop Trading Blindly
Infinity Scalper will give your buy and sell signals but to trade them blindly is a huge mistake.
That actually applies to any trading strategy for Forex, Futures, or any other market you trade. As an example, let's take a walk through of a currency pair I don't usually cover.
Let's just take a look starting at the European session, starting on the Monday. We're looking at 3:00 in the morning, to start, and we're going to look at the first two to three hours. This is what the PDF says, the trading manual, so if you're trading outside of the hours that's recommended, or you're trading different currency pairs and you're not doing very well on it, that's your own problem.
You should really make sure you're following the rules that come with the strategy.
Some people have asked me about the Euro-yen, something that I don't usually cover. I usually cover the USD crosses, but let's take a look at the Euro-yen. Again, like all these strategies that we talked about in all the videos, you cannot ignore price action and price structure, regardless of the method that you're trading, regardless of what the hype is on any sales page.
As you can see here, this moving average is one that I've put on. It's a 20 simple period moving average. It's just to give you an objective view of the trend. Again, the PDF talks about making sure you're not trading in chop.
With the moving average, you can pretty much see when you're in chop, especially when the price action is hugging the line, or whipping back and forth over the top of the line. But you also can notice, just by looking at the chart, you can see price action, price structure.
For example, coming into the Euro session, which is just after the Japanese session, you see we're in trading range. You're only looking at a 14 pip range, so you don't have a lot of room for error. You can also factor in some trend lines.
You can see that price is trending downwards. We can connect some highs here, and our lows are pretty much the same. I just want to connect these. So, you see what we're trading at. Just by using simple technical analysis, you can keep out of a lot of crappy trades. You can also be alerted to when trades are setting up that could be a higher probability of being good trades.
Infinity Scalper Trade Setup
If you look over here, our first set up, we're already in a short setup in through here, but 3:00 is right here. We're in chop. You don't trade. Our trend line is coming down through here. We see price breaking above it. Where's our first long trade is right here on this green candle right here, and price rockets up, for peak 27 pips.
If you waited until this exit here, which is pretty much at the close, it's called the optimal exit, you're looking at 22, 23 pips. That's the European session.
You have your higher high here, lows in through here. If you're high here, low, you can see we're trading inside here. Inside of this whole area right here is our chop zone. We don't want to be taking any trades that set up in through here until we start getting trades breaking out, which we do get into the morning here. This is 8:25.
How can you see that it's ranged?
Like I said, first two to three hours, probably want to lean more on the two, two and a half hours. You can see again, we start going into some rangy price action.
Do Not Trade In Obvious Range
Again, like I said, these ranges are obvious, and if you're trading inside of these ranges, and you're complaining that, "Oh, I'm not doing too well," well, it's because you're not following the rules that are laid out in the strategy which clearly says to trade in a trending market.
Okay. Again, we can just connect lows. Looking for breaks out of the lows. If you're looking at the moving average, we're not looking at anything to the short side on this break. When the first trade sets up here at 8:25, and again, where's this trade setting up?
It's setting up at a support area, but here's the thing. Basing on a support area is conducive to a break south. You want to see a bit longer. It's only a five minute chart, so this is not the kind of basing I'm talking about. I trade higher time frames, so my basing that I'm looking for are multiple days, not just 15 minutes of breaks of consolidation.
You can see it breaks the lows, and what does price do? Lot of times, they say, "Don't trade breakouts." Where do they tell you to trade? Breakout pull back. Breakout pull back. Just because it trades inside of here does not mean that this move is invalid to the downside.
If you think logically, what happens here, this is normal price action right through here. Price breaks down, and the entry price is here, here's your breakout pull back, so what do you do here? You're trading against the moving average, which is starting to flatten out here. Let's move over here. See? You can see how it's flattening out.
So what can you do? Well, use context. We've got basing price action that had just broken out of a range, breakout pull back. Our entry price on this trade is actually the close of this green candle. That's how we trade this, which is at 130.72. We trade back into it. I spoke about it another video, about getting in sync with the strategy.
If you were to do that, 23, 24 pips, not a whole lot, same as the Euro session, but again, it depends what you're trading. Trading at $1, roughly, average, because Euro Japanese Yen is not going to be $1 a pip. It's going to be depending on what currency you're trading, but let's just use $1 a pip. It's $23. That's nothing. What if you're trading multiples of that?
That's when you start to make money on these scalping trades.
Again, comes back down, pulls back up. Then we have a long trade here at 11:00, but remember what I said, first two to three hours, we start at 8:00 for the US session. 8 plus 3 is 11. There's no trade that you would take here. What would happen is ... This is what happens the rest of the session. We get a lot of choppy price action. You can see how that played out here.
So, did you get some profitable scalping trades from Infinity Scalper?
Yes, you got a profitable trade in the London session, and you got one profitable trade in the US session. If you just followed this blindly, you would have been buying here into resistance.
What don't you do?
You don't buy into resistance. This is standard trading.
A lot of these strategies make things too simple. I guess I want to use the word simple. But you still can't ignore just the basics of trading. If you're trading, and you're buying long into resistance, what you can do, if there's certain price action that you're looking for, but in this context, it's not what you're going to do.
Anything like Infinity Scalper, or Pips Wizard Pro, or any of the other trading strategies that we've talked about, they give you the setup. They give you the entry. It's up to you to filter it out or not filter it out.
This long is filtered out just by the rules in the PDF, which says do not trade in a non-trending market. Just by looking at the price action, drawing some simple lines, these are not trades that you would take. I can guarantee you, I can guarantee you someone went long right here, went up two, three pips, and it fell back, got stopped out, and they're blaming the strategy.
It's not the strategy's fault. It's your fault for not following the rules.
Anyways, we don't get our first trade short until 9:35. Is there any reason you would not take this trade? There shouldn't' be. There's no reason why you wouldn't take this trade. We got price moving down. It's putting in a lower low from here. It's putting in a lower high than here. There's no reason why you don't take this short trade. It pulls out 28 pips, if you get out here. If you wait till the opposing signal at 12:55, that's a long trade, that's 52 pips. Again, depends how you trade it.
Anyway, let's go to 8:00 in the morning. 8:00 in the morning has a trade to the upside, but do we take it? No, we don't take it. Why not? Because we got this moving average is down. We just broke out of this area here. You can actually say this breaks through this and this. You can actually move your line through here on the consolidation. Even if you didn't, this still comes up close enough.
Remember, Infinity Scalper is going to give you the scalping signals. It doesn't know that we've got a support area through here that's lasted, started at 1:30, and finally broke here at 6:45. It doesn't know. It's up to you.
How are you going to trade these? Are you going to trade right inside, when you've got these basing areas? How are you going to trade? Have a rule for how you're going to apply this.
So, anyways, this trade is at 5:35. It's the basing area we've talked about, but perhaps you don't take it there. Perhaps you wait just a little bit longer, and see if you can see some basing. If you wait too long, this has moved down. So, that's the thing you want to be careful of, all right?
Eventually it does drop 30 odd pips, or even more so, but we can't get into this trade. Why? Because at 6:00, when it finally breaks, you could get into this trade. This is at 5:35, so I guess you could, because we're saying we're going to trade till 6:00. Let's just put a line here on the ... This is your entry price. Get a little bit of heat, but this trade takes forever. You get out right about here if you're using the optimal exit for 27 pips, or you just ride it down, however you want to trade, to the opposing signal, which is right here. Or you just hang on. I don't know how you trade it. However you want to trade it. Or you just can just trail your stop. It all depends on how you trade. Below highs. Above highs. Okay.
Anyways, so we've got 8:00. We started at ... Sorry. We started at 3:00. We're working that trade until 6:00. Here's that 5:35, this trade's set up to go short. Would you go short right here, or would you say, "Well, I've got some extremes here, so let me just put my stop order right here." Well, you could do that, and then look what happened. Problem is, we're past our time.
This is the kind of trading, and you don't need this strategy to do this kind of trading, just looking at some basing before, this kind of stuff here is beautiful when it's at support, at the top of support, actually, or at the bottom of resistance, up in these areas here. These are great setups.
Anyways, we're looking to go long. This is telling you long, this is telling you to go short, but where are we once again? We're trading inside of how big of this range. Ten pips. That's even worse. We don't get a short trade setup till 5:35. This is what I've talked about. Look at the basing that's going on at support.
Let's draw a horizontal line. Horizontal line. Now, if you were going ... Well, that's not a proper line. You got to take into account this. Again, that's at 3:20. It hasn't happened yet. If you think that you trade, or you put horizontal support and resistance lines on extremes, well, that's standard textbook trading, but it's not ... Well, I'll just leave it there. You can trade that way if you'd like.
Let's move on. Here we are the next day. I'm going to keep this video short. I'm only going to do a few days, just to keep it short. You start at 3:00, which is right here. Let's take a look at the price action. Well, our moving average is down. The moving average is not part of the strategy. It tells you to trade with the trend, and that's what we're doing.
Buy Infinity Scalper
That's the way you're going to build your account up. That's by scalping and day trading. You can do it by swing trading, but that's going to take a long time.
So let's wrap it up. Do your own checking with these. I can just keep on putting videos and videos out there, so just applying technical analysis to these charts, that's how I would trade these charts if I was trading these. Some person had made a comment that I don't even trade these. Absolutely I don't. I don't need to. I prefer swing trading. I don't scalp. For a lot of you that have small trading accounts, why wouldn't you scalp?
If you're trading inside of this, even if you're trading a strategy that scalps highs and lows, support and resistance, you're only looking at 11 pips here, so the room for error is very, very slim.
Take into account price action.
Take into account consolidation.
Take into account trend.
All right. I'm just going to wrap it up here, on this day here. All I wanted to talk about in this video was if you're looking at these strategies to be the holy grail, that it's going to hold your hand, it doesn't happen that way.