What is Momentum Scalping?:
Setting Up Momentum Scalping Chart :
Momentum Scalping For Binaries :
DM
On this strategy, does the 3 tick rule apply ONLY to the candle after the signal candle or can you take any candle that breaks the high/low by 3 ticks after the signal candle?
On Momentum scalps - the Setup candle is the one that actual volume broke expectations. The entry is the very next bar (trigger bar) 3 ticks above/below the high/low of the setup candle if long/short on the candle/bar right after the setup candle only.
Should we be concerned at all with time premium for selecting a binary contract, when these criteria for entering the trade are met?
You need enough time for it to move. It will most likely be pure a pure premium trade as we usually use OTM or ATM/OTM on them. You will be looking at distance from where the market is from the strike.
So the price movement would be predominantly driven by the time value erosion of the binary, similar to a premium collection trade?
In the video you do say normal rules apply but if you are trading at night and using 3 or 4 tic bars or 4 min bars waiting for 3 tics is a whole bar or half a bar and would be entering halfway through a 6 tic or another whole bar on a 3 tic bar.
So question is no matter what size bar you use, you still wait for a break of 3 tics? It is probably a stupid question since you do state it above but nights are slow so just double checking.
Thanks, Scott
Yes I still use 3 ticks as a breakout but I may have to go for more bars if using a smaller size bar. I don’t really use 3 or 4 tick bars though.
On that trade you did that you made 1700 bucks. You said you put up 15 bucks. I am assuming you bought much more than 1 contract.
Yes that was multiple contracts. When a binary expires it is worth max $100.00 So yes this was multiple contracts
I’m somewhat confused about the notion of finding the contract using the scanner simulator before the event (3 ticks above/below high of previous setup bar) occurs. In the third video posted there are examples of large price movement in 2-3 ticks. When you look for the contracts before the buy/sell event right after the setup bar isn’t the price already too high/low for a considerable profit when you pull the trigger? I guess I just need some tips on timing and finding the right contract.
