December 2011

PRICE
ACTION
SCALPER
(Forex)
The easiest price action manual trading system
without indicators!
DISCLAIMER
Please be aware of the loss, risk, personal or otherwise consequences of the
use and application of this books content! "he author and the publisher are
1
not responsible for an# actions that #ou undertake and will not be held
accountable for an# loss or in$uries!
%!S! &o'ern(ent Required Disclai(er ) Co((odit# *utures "radin+
Co((ission *utures and ,ptions tradin+ has lar+e potential rewards, but also
lar+e potential risks! -ou (ust be aware of the risks and be willin+ to accept
the( in order to in'est in the futures and options (arkets! Don.t trade with
(one# #ou can.t afford to lose! "his is neither a solicitation nor an offer to
/u#0Sell futures or options! 1o representation is bein+ (ade that an# account
will or is likel# to achie'e profits or losses si(ilar to those discussed on this
web site! "he past perfor(ance of an# tradin+ software or (ethodolo+# is not
necessaril# indicati'e of future results!
C*"C R%LE 2!23 ) 4-P,"4E"ICAL ,R SIM%LA"ED PER*,RMA1CE
RES%L"S 4A5E CER"AI1 LIMI"A"I,1S! %1LI6E A1 AC"%AL
PER*,RMA1CE REC,RD, SIM%LA"ED RES%L"S D, 1," REPRESE1"
AC"%AL "RADI1&! ALS,, SI1CE "4E "RADES 4A5E 1," /EE1
E7EC%"ED, "4E RES%L"S MA- 4A5E %1DER),R),5ER
C,MPE1SA"ED *,R "4E IMPAC", I* A1-, ,* CER"AI1 MAR6E"
*AC",RS, S%C4 AS LAC6 ,* LI8%IDI"-! SIM%LA"ED "RADI1&
PR,&RAMS I1 &E1ERAL ARE ALS, S%/9EC" ", "4E *AC" "4A" "4E-
ARE DESI&1ED :I"4 "4E /E1E*I" ,* 4I1DSI&4"! 1,
REPRESE1"A"I,1 IS /EI1& MADE "4A" A1- ACC,%1" :ILL ,R IS
LI6EL- ", AC4IE5E PR,*I" ,R L,SSES SIMILAR ", "4,SE S4,:1!
1o representation is bein+ (ade that an# account will or is likel# to achie'e
profits or losses si(ilar to those shown! In fact, there are frequentl# sharp
differences between h#pothetical perfor(ance results and the actual results
subsequentl# achie'ed b# an# particular tradin+ pro+ra(! 4#pothetical
tradin+ does not in'ol'e financial risk, and no h#pothetical tradin+ record can
co(pletel# account for the i(pact of financial risk in actual tradin+!
All infor(ation on this website or an# e)book purchased fro( this website is
for educational purposes onl# and is not intended to pro'ide financial ad'ice!
An# state(ents about profit or inco(e, e;pressed or i(plied, do not represent
a +uarantee! -our actual tradin+ (a# result in losses as no tradin+ software is
+uaranteed! -ou accept full responsibilit# for #our actions, trades, profit or
loss, and a+ree to hold *ore; Mercenar# and an# authori<ed distributors of
this infor(ation har(less in an# and all wa#s! "he use of this software
constitutes acceptance of (# user a+ree(ent!
C,P-RI&4"
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"his book is the cop#ri+ht of the Price Action Scalper website =6! Ditt(ann>
and cannot be re)written, re)published, S",RED ,R LI16ED A" A1- *ILE
S4ARI1& SI"ES or *,R%MS or used for an# other books without proper
referencin+ without per(ission! "he use of the books is li(ited to #our
personal use! Spreadin+ out the copies without pa#in+ for the( is ille+al and
protected b# international cop#ri+ht law!
Cop#ri+ht ? @A33
*ore; Scalpin+
Scalpin+ in the fore; (arket in'ol'es tradin+ currencies based on a set of real)
ti(e anal#sis! "he purpose of scalpin+ is to (ake a profit b# bu#in+ or sellin+
currencies and holdin+ the position for a 'er# short ti(e and closin+ it for a
s(all profit! Man# trades are placed throu+hout the tradin+ da# and the
s#ste( that is used b# these traders is usuall# based on a set of si+nals deri'ed
fro( technical anal#sis chartin+ tools, and is (ade up of a (ultitude of
si+nals, that create a bu# or sell decision when the# point in the sa(e
direction! A fore;scalper looks for a lar+e nu(ber of trades e;pectin+ a s(all
profit each ti(e! Scalpin+ is a (ethod where traders allow their positions to
last onl# for a (atter of seconds, to a full (inute and rarel# lon+er than that!
=if a trader holds a position for (ore than a (inute or two it is not considered
scalpin+, but rather re+ular tradin+!>
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*ore; Scalpin+ S#ste(s
A fore; scalpin+ s#ste( can be either (anual, where the trader looks for
si+nals and interprets whether to bu# or sellB or auto(ated, where the trader
CteachesC the software to look for si+nals and how to interpret the(! "he
ti(el# nature of technical anal#sis (akes real)ti(e charts the tool of choice
for fore; scalpers!
:h# Scalpin+D
"he purpose of scalpin+ is to (ake s(all profits while e;posin+ a tradin+
account to a 'er# li(ited risk, which is due to a quick open0close tradin+
(ode!
"here wouldnt be an# point in scalpin+ for (an# traders if the# werent
allowed to trade with hi+hl# le'era+ed accounts! ,nl# the abilit# to operate
with lar+e funds of, actuall#, still 'irtual (one#, e(powers traders to profit
fro( $ust a @)E pip (o'e!
4ow do the# do itD
Suppose a scalper opens a tradin+ position of F3AAA with the E%R0%SD! *or
each pip he will now earn F3AG Closin+ the trade with onl# a H pip profit
brin+s it up to FHA I not bad for less than a (inute of workG
*ore; brokers for Scalpin+
Ask #our broker if the# allow scalpin+G :hich brokers allow scalpin+D
=Scalpin+ ) holdin+ a position for less than 3 (in>
*ore;!co(
M& *in &roup
Interbank*;
,anda
4
M/ tradin+
&lobal *ore; "radin+
CMC Markets
I*7 Markets
*7 Solutions
Interacti'e /rokers
CMS *ore;
*7CM =*ore; Capital Markets>
INTRODUCTION: Price Action Scalper
Dear traders! :e all want to (ake fast (one# with *ore;! "here are 3AAs of
scalpin+ tradin+ strate+ies in *ore;, but JJ,JK of the( do not work or are $ust
'er# difficult to follow!
Scalpin+ usin+ the (t2 indicators can be 'er# difficult due to si+nal dela#s,
la++in+ etc! In this case so(eti(es is (uch (ore profitable to use a price
action scalpin+ s#ste( that uses no indicators! "he price will tell #ou what to
do! "he price is #our si+nal and #our best indicator! "here is one price action
scalpin+ s#ste( that in'ol'es no indicators, no robots L onl# #our tradin+
screen! "he followin+ scalpin+ s#ste( has pro'en to work $ust fine and #ou
will be able to (ake a +ood profit if #ou follow all the rules and risk
(ana+e(ent reco((endations!
"he MPrice Action ScalperN uses no co(plicated rules and will be 'er# eas# to
use for an# trader L e'en if #ou ha'e ne'er traded *ore; before!
All #ou need to know is how to open a couple of tradin+ charts on #our tradin+
ter(inal! "he s#ste( does not require a trader to follow (a$or *ore; rules
likeO do not trade a+ainst a trend, i+nore si+nals a+ainst a trend L because the
s#ste( itself L confir(s trend followin+P
Scalpin+ is not eas# for be+inners, please tr# the s#ste( on #our de(o account
for at least one (onth before +oin+ li'e!
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The System:
"he CPrice Action ScalperN is a tradin+ strate+# usin+ 2 screens L it is a no
indicators *ore; strate+#! It +i'es a +ood chance of profit, with proper risk
(ana+e(ent ) and the possibilit# of a stable inco(e!
"his uni'ersal s#ste( can be used for a 'er# short scalpin+ tradin+ session as
well as for a re+ular da# of tradin+ lon+er trades! :e will discuss both
(ethods =when to place orders, take profit, set a stop loss> for both scalpin+
and nor(al da# tradin+!
"he CPrice Action ScalperN is based on a 2)screen s#ste(, and uses the 43,
MH, M3H and MEA ti(e fra(esB protecti'e stop orders includin+ a trailin+
stop, a stop loss as well as take profit le'els!
In order to i(ple(ent the s#ste( L all #ou ha'e to do is to open =in #our
tradin+ ter(inal> four windows with the currenc# pair =for e;a(ple
E%R0%SD> ti(efra(es of 43, MH, M3H, MEA! If #ou choose C5erticalC in the
C:indowC (enu Metatrader 2 four screens in the ter(inal will be placed in
ad$acent windows in order!
SAMPLEO
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How it wors:
"he MPrice Action ScalperN s#ste( based on a stron+ current trend
confir(ation entr# si+nal which is 'er# eas# to see on #our tradin+ ter(inal L
2 windows =charts>! -ou will +et a si+nal once per hour =al(ost e'er# hour>!
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"o use this s#ste( #ou dont need to sit and watch the (arket all the ti(e L
$ust +et read# at the last (inute of the current hour L if there is a si+nal L
place a trade, if not L #ou are free a+ain for the ne;t HJ (inutes until the ne;t
tradin+ opportunit#! =if #ou want (ore si+nals ) #ou can open H)Q pairs at the
sa(e ti(e L 2 ti(efra(es for each> Si(ple and con'enientP
!U" entry:
# :ait for a current hour candle to close
) If all 2 of the last candles =MH, M3H, MEA and 34> closed in M+reenN L wait
for the price to +o another E pips abo'e the close and instantl# place a /%-
order!
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*ro( the screenshot abo'eO
3! ,n 34 chart ) a JOAA candle closed +reen at 3AOAA!
@! ,n MEA chart L a JOEA candle closed +reen at 3AOAA
E! ,n M3H chart L a JO2H candle closed +reen at 3AOAA
2! ,n MH chart L a JOHH candle closed +reen at 3AOAA
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H! "he price +oes another E pips abo'e the close!
If all the abo'e conditions (et L place a /%- order at current priceO
It is 'er# i(portant to wait until the price (o'es another E pips abo'e the
close L it is #our double confir(ed entr# si+nal!
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ATTENTIONO If the price does not break E pips of #our entr# le'el within the
first H (inutes of the hour L Do not enter a tradeP 9ust wait for another
tradin+ opportunit# at the be+innin+ of the ne;t hour!
If #ou prefer to use the s#ste( as a scalper L (ake sure to keep #our take
profit and stop loss orders 'er# ti+ht! :e will discuss all the scalpin+ and0or
lon+er da# tradin+ entries below! En$o# +reat and fast profit, see the sa(ple
below =take profit and stop loss for this trade will be e;plained below>
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An opposite rule for a SELL entr#!
SELL entry:
# :ait for a current hour candle to close
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) If all 2 last candles =MH, M3H, MEA and 34> closed in MredN L wait for the
price to +o another E pips below the close and instantl# place a SELL order!
*or e;a(pleO
3! ,n 34 chart ) an 33OAA candle closed red at 3@OAA!
@! ,n MEA chart L an 33OEA candle closed red at 3@OAA
E! ,n M3H chart L an 33O2H candle closed red at 3@OAA
2! ,n MH chart L an 33OHH candle closed red at 3@OAA
H! "he price +oes another E pips below the close!
If all the abo'e conditions ha'e been (et L place a SELL order at the current
priceP
"his e;a(ple is, of course, perfect! In realit#, a candle, sa#, M3H (a# be closed
+reen! In this case, other candles bein+ red, we will ha'e to wait for the ne;t
candle!
STOP LOSS an$ TA%E PRO&IT
' options
3! Place a fi;ed stop loss at @ pips below the low of the pre'ious 3 hour candle
for a bu# trade or @ pips abo'e the hi+h of the pre'ious 3 hours candle for a sell
trade! "his is the best option for a short ter( scalpin+ trade!
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@! Place a fi;ed stop loss at @A pips awa# fro( #our entr# pointO
:hen the price reaches 3H pips L stop loss is transferred to breake'en!
Dependin+ on #our tradin+ preferences, #ou can resort to the trailin+ stop!
E! Place #our stop loss order near the (a$or hi+hs0lows L (a$or support and
resistance le'els! "he MPrice Action ScalperN s#ste( can be successful onl# b#
strict co(pliance with the rules! "ake)profit should alwa#s be @)E ti(es
+reater than the stop loss!
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Place a fi;ed tae pro(it at EA)2A pips awa# fro( #our entr# pointO
%suall# -ou can e;pectO RH)SATK of #our trades to be profitable !
1ote for "his s#ste(O do not trade ri+ht before, durin+ or i((ediatel# after
(a$or news releases!
I)PORTANT: Recommen$e$ set*p o( the +Price Action Scalper,:
I reco((end to use the s#ste( on a couple of pairs at the sa(e ti(e!
In order to do so ) trade H)Q (a$or pairs at the sa(e ti(e L in this case #ou
will ha'e to open 2 charts for each pairO MH, M3H, MEA and 34!
"his setup will +i'e #ou a lot of si+nals e'er# da# and RH)SAK of the( will be
profitable!
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Scalpin- tips:
/ut there are se'eral thin+s that newer *ore; scalpers (ust take into
consideration! "his is the (ain point of this article! So please pa# attention
and I assure #ou that #ou will beco(e a proficient *ore; scalper in no ti(e
flatP
3! Alwa#s ask if it.s allowed!
"his is the first and bi++est thin+ that #ou need to do when scalpin+ *ore;! So
alwa#s (ake sure #our brokera+e allows #ou to trade with this a(a<in+ st#leP I
like to call and talk to a (ana+er or so(eone i(portant! I ha'e asked people
on the chat if scalpin+ fore; was allowed andthe# all said that it was! Call and
ask #our broker, it was well worth it!
@! Scalpin+ in nu(bers is the secretP
Re(e(ber earlier when I told #ou that scalpin+ a sin+le pair won.t (ake #ou
(uch (one#D 4a'e #ou e'er heard of the sa#in+, C"here.s power in
nu(bersDC :ell this is a scientific fact that has been pro'en o'er and o'er
a+ain! :hen #ou scalp a pair (ake sure that #ou purchase a hi+h a(ount!
"his is to (a;i(i<e #our profits! So if #our trade (akes @ pips #ou can (ake
upwards of a couple hundred to a couple thousand dollars!
E! /e careful!
"his is probabl# +oin+ to be one of the (ost i(portant tips e'er! Alon+ with
the quick profits, #ou can and (ost likel# will co(e across a couple losses on
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this (a+ical *ore; scalpin+ $ourne#P "his is wh# #ou ha'e to be able to accept
these losses! "radin+ on a s(all scale can be easier for so(e! I alwa#s su++est
that newer traders should reall# tr# to scalp on a de(o account! &et
co(fortable with tradin+ on a short ter( scale! I would ad'ise that #ou should
onl# scalp on a li'e account when #ou feel 3AAK co(fortable with e'er# trade!
I(a+ine the de(o account bein+ #our (one#! I(a+ine takin+ a hu+e loss in
real life when #ou (ake a (istake! :hen #ou feel full# co(fortable with
e'er#thin+ e'en after a bi+ loss, then #ou are read# to trade for real!
2! Scalp the *ore; (arket with a planP
"his is the best wa# to a'oid losses durin+ #our ad'enture! %se that de(o
account that we talked about earlier to find a suitable set of indicators or
oscillators or e'en bothP "he de(o account allows #ou to trade in a real ti(e
settin+ while tr#in+ out different s#ste(s! "his can +reatl# increase #our odds
of (akin+ a +ood profit! "r# e'er# sin+le co(bination of technical indicators!
Do this until #ou find a pair that #ou like! ,nce #ou find one then #ou will
trul# be on #our *ore; scalpin+ $ourne#! Please (ake sure that #ou use (#
tips!
:ar( re+ards
6arl Ditt(ann
Dece(ber @A33
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