1 MINUTE SCALPING

STRATEGIES IN NIFTY & BANK NIFTY

LEARN MY 15 SIMPLE & POWERFUL SCALPING

STRATEGIES

Vikram Prabhu
www.pivotcall.com
CONTENTS
SESSION (1) SCALPING INTRODUCTION
What is Scalping? Basics, Do’s & Don'ts
Scalping VS Day Trading
Best Time Frame for Scalping
1 min vs 5 Min Candle stick chart Difference
Importance of Power candles in Scalping
Preparing chart for Scalping & 5 key levels for Scalping
SESSION (2) SCALPING STRATEGIES

Trend Following Scalping Strategies

1) Counter Bull Traders Trap Strategy
2) Counter Bear Traders Trap Strategy
3) Bull candle 180 Reversal Strategy
4) Bear candle 180 Reversal Strategy
5) 3 EMA Trend following Strategy
Scalping Pull Back Strategies
1) Re-Test Entry Strategy
2) Wicks Pull back Strategy
3) V Reversal Strategy
4) Power Candle Pullback Strategy
Scalping Breakout Strategies
1) First candle Open Breakout Strategy
2) Wicks Breakout Strategy
3) Ultra High Volume Breakout Strategy
4) 3 PM Volume breakout Strategy
5) Multiple candle Range Breakout Strategy
6) Lilliput Candles Breakout Strategy
SESSION (3) RISK MANAGEMENT IN SCALPING
Why & What is Risk Management in Scalping
Position Sizing in Scalping
How to keep Stop Loss in Scalping

SESSION (4) TRADING PSYCHOLOGY IN SCALPING

Trading Psychology Tips for Scalping
Things to remember before becoming a Scalper
 SESSION (1)
INTRODUCTION OF SCALPING
WHAT IS SCALPING? BASICS
What is Scalping?
Scalping is a short-term trading technique where traders take trades at
the lightning speed for a small movement in the instrument with a big
volume.
Scalpers don’t hold on to their position for more than a few seconds to
few minutes, taking a big position for small small moves instead of
waiting for a big move to occur.
The nickname for traders that employ the scalping strategy is called
“scalpers.”
DO’S & DON’TS OF SCALPING

DON’TS of scalping
Avoid overtrading or Revenge trading In Scalping
Never Trade without Stop Loss and Profit Target.
Never Trade in illiquid instruments (Nifty & Bank Nifty are more
ideal)

DO’S of scalping
Take profits quickly in Scalping.
Have a solid strategy in place, with clear entries and exits.
SCALPING VS DAY TRADING

Scalping Day trading

From few seconds to a few From a few minutes to a few

Trade duration
minutes hours
Trades closed before market
Yes Yes
close
Trading frequency Higher Lower
Mainly catching Minor Momentum Mainly catching Major trends &
Catalyst for trades
& Minor reversals Major Reversals
Very High (for in disciplined
Risk High (for in disciplined Traders)
Traders)
Proficiency Highly experienced Moderate experience
Cost and other charges High Medium
BEST TIME FRAME FOR SCALPING
Most commonly used time frame for scalping is 1 min, 5 min and 15 minutes
As per technical analysis, Lesser the time frame earlier the entry, hence
good risk reward trade, but higher time frames are more accurate.
Since Scalping requires early entry and exit, 1 min is most ideal for Scalping,
hence in this course we use 1 min candle stick charts for the scalping entry
and sometimes 5 min candle stick time frame charts as a reference chart to
decide the entry and exit signal.
Smaller Time frame – 1 min chart
Bigger time frame (Reference chart) – 5 min chart
1 MIN VS 5 MIN CANDLESTICKS CHARTS DIFFERENCE
5 minutes candlestick charts can give better picture to analyze support
or resistance on the charts based on past price action.
1 minutes candlestick time frames can give better entries for scalping
since one needs lightning speed in punching the orders at the right
place.
5 minutes charts may not show minor trends (like uptrend/downtrend) in
intraday.
1 Minute charts can show many intraday trends where one can deploy
trend following strategy for quick scalps.
In 1 min chart, entry will be faster for scalping.
In 5 min chart, entry will be late for scalping.
5 MIN TIMEFRAME CHART
1 MIN TIMEFRAME CHART
TREND ON 5 MIN TIMEFRAME CHART
TREND ON 1 MIN TIMEFRAME CHART
TREND ON 1 MIN TIMEFRAME CHART
TREND ON 1 MIN TIMEFRAME CHART
IMPORTANCE OF POWER CANDLES IN SCALPING
Power candle is a basic single candle formation containing a large and
thick body without any wicks on both side (Not same as marubozu
candle)
To qualify as a power candle, it’s important that the range of the candle
(high-low) is larger than the surrounding candles.
It’s very clear from the structure of a Power Candle that they are
caused by a very aggressive move in one clear direction, if candle is
Green means aggressive buyers and aggressive sellers if candle is
Red.
Mostly power candles seen near the support/resistance, it’s an early
indication of likely breakout of that level or likely reversals.
POWER CANDLES ON 5 MIN CHART
POWER CANDLES ON 1 MIN CHART
 PREPARING CHART & 5 KEY LEVELS FOR SCALPING

Unlike Day Trading, in Scalping preparing the chart is more important in

live (current) market because scalper capture small movements like say,
one resistance to next, or one support to next etc.
But, nevertheless, marking and knowing important price action levels like
PDH, PDL, PDC, Swing High, Swing Low, Supply/Demand, Gaps border
etc before market opens can help to know major support/resistance etc.
In scalping, most important is current day price action rather than
previous day levels or previous session levels from higher time frame.
So, scalper needs to be quick in marking important levels in live market
based on 1 min and 5 min time frame chart (important levels to be
watched discussed in the next slide)
 5 KEY LEVELS TO WATCH FOR IN SCALPING

1) Current day swing high swing low for support & resistance (on 1 min & 5 min time
frame)
2) Important Candles like Maribozu or Elephant candles, mainly Red in uptrend and
Green in downtrend (on 1 min & 5 min time frames)
3) Doji candles or Tiny/lilliput pin bar candles at important levels (on 1 min Time
frame)
4) 20 EMA for knowing the current trend, whether up or down ( on 1 min & 5 min time
frame)
5) Large wicks or Spikes on candle sticks in a strong trend ( on 1 min & 5 min time
frame)
CURRENT DAY SWING HIGH IN CHART (ON 1 MIN TIME FRAME)
CURRENT DAY SWING LOW IN CHART (ON 1 MIN TIME FRAME)
 LOOK FOR CANDLES LIKE RED MARUBOZU OR ELEPHANT
CANDLES OR POWER CANDLES (OR SERIES OF SUCH CANDLES) (1
MIN TIME FRAME)
 LOOK FOR CANDLES LIKE GREEN MARUBOZU OR ELEPHANT
CANDLES OR POWER CANDLES (OR SERIES OF SUCH CANDLES)
(1 MIN TIME FRAME)
LOOK FOR DOJI CANDLES OR TINY PIN BAR CANDLES AT IMPORTANT LEVELS
(ON 1 MIN TIME FRAME)
LOOK FOR DOJI CANDLES OR TINY PIN BAR CANDLES AT IMPORTANT LEVELS
(ON 1 MIN TIME FRAME)
20 EMA TIME FRAME FOR KNOWING THE TREND, WHETHER
UP OR DOWN ( ON 1 MIN & 5 MIN TIME FRAME)
LARGE WICKS OR SPIKES ON CANDLE STICKS IN A STRONG TREND
( ON 1 MIN & 5 MIN TIME FRAME)
 SESSION (2)
SCALPING STRATEGIES
TREND FOLLOWING STRATEGIES
COUNTER BULL TRADERS TRAP STRATEGY
a) Trend –Down Trend
b) Time Frame – 1 minute
c) EMA – use 20 EMA to analyze the Down Trend
d) Short Entry on Red candle which pierced and closed below
extreme green candle close
e) SL above the entry candle (Red candle)
f) Take profit green candle low swing low or 1R TO 2R.
g) High probability If entry candle high also meets some resistance
and it happens above 20 EMA.
COUNTER BEAR TRADERS TRAP STRATEGY
a) Trend –Up Trend
b) Time Frame – 1 minute
c) EMA – use 20 EMA to analyze the Up Trend
d) Long Entry on Green candle which pierced and closed above
extreme Red candle close
e) SL below the entry candle (Green candle)
f) Take profit Red candle high swing high or 1R to 2R.
g) High probability If entry candle high also meets some support and it
happens below 20 EMA.
BULL CANDLE 180 REVERSAL(TRAP) STRATEGY
a) Trend –Strong Down Trend
b) Time Frame – 1 minute & 5 Minute
c) EMA – use 20 EMA to analyze the Down Trend
d) Short Entry(on 1min time frame chart) on the immediate Red candle which
broken Green candle low in the downtrend (in 5 minutes timeframe chart)
e) SL above the entry candle (Red candle) in 1 min chart or above 5 min
Green candle high.
f) Take profit at 1R to 2R or ride the trend plotting 8 EMA.
g) This pattern only to be applied in the strong down trend.
BEAR CANDLE 180 REVERSAL(TRAP) STRATEGY
a) Trend –Strong Up Trend
b) Time Frame – 1 minute & 5 minute
c) EMA – use 20 EMA to analyze the Trend
d) Long Entry on the Green candle(1 minute chart) which broken Red candle
in the Up trend(5 minute chart).
e) SL below the entry candle or below the Red candle (Green candle) in 5
min chart
f) Take profit at 1R to 2R or ride the trend by plotting 8 EMA.
g) This pattern only to be applied in the strong up trend.
3 EMA TREND FOLLOWING STRATEGY
a) Trend – Uptrend or Down Trend
b) Time Frame – 1 minute
c) EMA – 20, 50 AND 100 EMA
d) Entry on bearish pin bar at 20 EMA and SL below 50 EMA Or Entry on pin bar
at 50 EMA and SL below 100 EMA (In down trend)
e) Entry on bullish pin bar at 20 EMA and SL above 50 EMA Or Entry on pin bar
at 50 EMA and SL above 100 EMA (In up trend)
f) Take profit at swing high in uptrend or swing low in downtrend or 1R to 2R.
G) Keep SL after analyzing the width between each EMA, if width is too much
between EMA then keep SL above or below entry EMA.
SCALPING PULL BACK STRATEGIES
RE-TEST ENTRY SCALPING STARATEGY
a) Trend – Up Trend/Down Trend/Sideways Trend
b) Time Frame – 1 minute(For entry) & 5 min (as a reference chart)
c) EMA – use 20 EMA to analyze the Trend
d) Identify the breakout level on 5 min chart and mark a horizontal line.
e) Long Entry on the Green pin candle which takes support at breakout line in
uptrend or short entry on red pin bar at breakout line in downtrend.
f) SL below the Green pin bar or below breakout line in uptrend and above
Red pin bar or above breakout line in downtrend.
g) Take profit at 1R to 2R. or swing high in uptrend or swing low in downtrend.
WICKS PULL BACK STRATEGY
a) Trend – Strong Up Trend or Strong Down Trend
b) Time Frame – 1 minute
c) EMA – use 20 EMA to analyze the Trend
d) Identify the Green candle which made a hugh wicks(master candle) at opening or
in uptrend or Red candle which made a hugh wicks(master candle) at opening on
downtrend (Wicks candle should not be extreme candle if in middle of the day)
e) Long Entry on the Green small candle which closed above that wicks candle close,
short entry on small Red below closed below Red wicks candle close.
f) Take profit at the Wicks or 1R to 2R.
, SL below the master candle (wicks candle)
g) High Probability if it happens on first candle of the Day.
V REVERSAL STRATEGY
a) Trend – Uptrend/Downtrend/Sideways Trend
b) Time Frame – 1 minute
c) Keep volume bars on the chart.
d) Look for at least 5 consecutive bearish Red candles(If candle size is medium size) if
candle size is too big then 3 big red candles also fine, enter long in a strong parabolic
down move once last Red candle high broken or makes a reversal bullish pin bar after
series of Red (Last Red candle volume should be almost same or more than previous few
red candles)
e) SL below the entry candle(Green candle) or below the last Red candle low(whichever is
lower)
f) Take profit at next resistance like 20 EMA (in sideways market) or swing high or 1R to 2R
g) High Probability if entry candle meets some strong swing low support.
POWER CANDLE PULL BACK STRATEGY

a) Trend –Sideways Trend/ Up trend /Down trend.

b) Time Frame – 1 minute
c) Look for Red Power candle at swing high or Green power candle at swing
low and go long on bullish pin bar once price reached low of Green or High
of Red candle
d) Take profit at power candle high(If it is Green) or power candle low(If it is
Red) or 1R or 2R
e) SL below entry candle
f) High probability if Power candle also has some support or resistance at
the time of entry and it has to be extreme candle.
SCALPING BREAKOUT STRATEGIES
FIRST CANDLE OPEN BREAKOUT STRATEGY
a) Trend –This is market opening strategy so Trend is not applicable
here.
b) Time frame – 1 minute
c) Look for first 1 min candle(Big Green candle or bullish pin bar or
Doji, preferably gap up), mark the open of first Green candle, and
wait for breakout of open with a strong Red candle(Preferably power
candle)
d) Enter once first candle open was broken with red candle.
e) Take profit at first candle low or 1R or 2R or next support like PDH
or Pivot etc, SL above the breakout candle.
WICKS BREAKOUT STRATEGY
a) Trend –Uptrend or downtrend.
b) Time frame – 1 minute for entry and 5 min as reference.
c) Look for 5 min candle with big wicks, can be Red or Green or
Doji, enter short once wicks broken if the trend is down, and go
long if wicks broken on upside in the uptrend.
d) SL below or above the entry candle.
e) Take profit at 1R or 2R or next strong support or Resistance.
ULTRA HIGH VOLUME BREAKOUT STRATEGY
a) Trend –Uptrend or downtrend.
b) Time frame – 1 minute for entry and 5 min as reference chart.
c) Look for 5 min candle, Green or Red or Doji with abnormal
volume, wait for candle with abnormal volume to get broken, look for
high to be broken if it was Red candle and low to be broken if it was
Green candle, either side if it was Doji.
d) SL below or above the candle which has abnormal volume.
e) Take profit at 1R or 2R or next strong support or Resistance.
f) High probability only on 5 min time frame candle chart.
3 PM VOLUME BREAKOUT STRATEGY
a) Trend –Uptrend/downtrend/sideways Trend.
b) Time frame – 1 minute
c) Look for 1 min candle at 3 pm, if volume is abnormally higher
at 3 pm candle than recent candles volume then go long if
volume bar is green and go short if volume bar is Red, high
probability if candle is power candle or elephant candle and
breaking some support or resistance or some range.
d) SL below or above the 3 pm candle.
e) Take profit at 1R or 2R or trail the SL with 8 EMA.
MULTIPLE CANDLE RANGE BREAKOUT STRATEGY

a) Trend –Strong Uptrend or Strong downtrend

b) Time frame – 1 minute for entry and 5 min as reference chart.
c) Look for series of small candles on 5 min time frame which
making a range after a big down move or big up move(in top of a
uptrend and at bottom of a downtrend), enter short or Long once
those range is broken in the direction of trend.
d) SL below or above the range, take profit at 1R or 2R or ride the
trend by plotting 8 EMA.
e) Applicable only in strong uptrend or strong downtrend.
LILYPUT CANDLES BREAKOUT STRATEGY
a) Trend –Uptrend or Downtrend OR Sideways.
b) Time frame – 1 minute
c) Look for series of small Doji or lilliput pin bar candles after a big red
candle low (in uptrend or sideways) or big green candle high (in uptrend or
sideways)
d) Entry once lilyput candles range is broken, Take profit back to Green
candle high or Red candle low or swing high/swing low or 1R or 2R
e) SL above or below the range of tiny candles.
f) High probability if this pattern happens near some strong support or
resistance.
 SESSION (3)
RISK MANAGEMENT IN SCALPING
WHY & WHAT IS RISK MANAGEMENT IN SCALPING

Losses are inevitable in Stock market Trading(scalping), there is no

way to avoid losses in Trading, it is part and parcel of Trading world, but
the best part is we can limit the loss or we can decide how much we
are ready to lose by managing the Risk.
Risk Management is pre determining your loss based on your risk
appetite, means trading with a stop loss and placing order of only that
particular number of units or lot sizes so that if stop loss hits your
losses are within your limits, which should be just a fraction of your
capital, generally around 1% of the capital per trade.
WHY RISK MANAGEMENT

According to legendary trader Ed Seykota, there are three rules to successful

trading, first is "cut your losses quick." second is "cut your losses quick." and
third is "cut your losses quick." that is one common rule of thumb, that is never
to risk losing more than 1% of your portfolio in any single trade. That way you
can suffer a string of losses—and not do too much damage to your portfolio.

If you lose 10% of your capital, you only need a gain of 11.1% to get to
breakeven. But if you lose 50%, you'll need to double your money just to get
back to even.
WHY RISK MANAGEMENT
Risk management is the ability to control your losses so that you don’t
lose your entire capital.
Let us look at example of Scalper A and Scalper B, both start with
1,00,000 Capital.
Result of Scalper A
Scalper A has 1,00,000 account, and he risked 25% in each trade, it took
only 4 losses in a row to blow up his entire capital.
-25% -25% -25% -25% = BLOW UP OF CAPITAL(after just 4 Trades)
Result of Scalper B
-1% -1% -1% -1% +2% -1% +1% +1% +1% +2% = +2% (after 10 Trades)
Scalper A blown up his capital in just 4 Trades and out of the market
after 4 losses in a row.
Scalper B also had 4 losses in a row initially but since he risked
only 1% of his capital he could survive in market and saved his
capital and eventually he was in profit after series of 10 Trades.
Moral of the story is, Risk max 1% of capital in each trade, position
the trade in such a way that if SL hits loss is only max. 1%
Survival in market should be priority of every trader, if you survive
then only you can learn to Trade.
%OF LOSS OF %GAIN TO
TRADING CAPITAL RECOVER LOSS

10% 11.1%
20% 25%
30% 42.85%
40% 66.66%
50% 100%
60% 150%
70% 233%
80% 400%
90% 900%
100% CAPITAL GONE
POSITION SIZING IN SCALPING
Divide your Trading capital in to 2 parts, suppose your overall Trading
capital is 5 lakhs then it is 2.5 lakhs each.
Keep daily Risk limit to maximum 2% of your over all capital(5 lakhs), so it
will be 10k Risk per day (*This is little aggressive approach, for new and orthodox scalpers I
suggest Risk only 1% your of capital per day)

So if two initial trades stop loss hits then it will be loss of 1% of your capital,
If 3 back to back stop loss hits then close the system, don’t take any more
scalps.
Keep a cap on 2% Risk per day, and strictly stick to it (*only for aggressive scalpers,
otherwise 1% risk per day)

Have a cap on number of max trades per day, like around 4-5 scalps per
day (only if already in profit), increase the number of scalps only if already in
good profits, risk new scalping trades only from already generated profit.
POSITION SIZING IN TRADING
Refers to the technique of determining the size of your trade and
calculating Stop Loss points then to decide number of shares or lots to
decide before taking the Trade.
For a Trader with 5 lakhs capital, 1% Risk is 5,000
So each Trade should lose only 5,000 if stop loss hits, so if stop loss is
20 points then one can trade with max 5 lots of Nifty only(Nifty per lot 50
units) 250X 20 = 5,000
If stop loss is bigger than lot size should decrease, suppose stop loss is
50 points then max lot to trade is 2 lots.
2 lots of Nifty only(Nifty per lot 50 units) 100X 50 = 5,000
HOW TO KEEP STOP LOSS IN SCALPING
Stop loss should be always a small percentage of the capital, that doesn’t mean
taking random trades and keeping small stop Loss, but entering at the right place
like support/resistance and taking trades by keeping stop loss below or above that
level(but entry/exit signal always based on spot chart)
If trading in option buying, follow Options chart of that same strike price for keeping
stop loss, but entry signal based on spot chart(go for ATM or Slightly ITM Options,
avoid buying same week expiry option if it is an expiry day, on expiry day trade on
next week expiry or monthly expiry option, if monthly options not expiring same day
(Trading in option selling, just like option buying keep stop loss based on option
chart, and even on expiry day also can trade even if that option expiring same day)
Trading in Futures, entry signal based on spot chart but stop loss based on future
chart, expiry days doesn’t matter while trading in future, but trade in same month
future.
NIFTY 1 MIN SPOT CHART 6TH APRIL, THURSDAY, (WEEKLY EXPIRY DAY)
NIFTY 1 MIN OPTION CHART,6TH APRIL (MONTHLY OPTION CHART APR 17600CE)
NIFTY 1 MIN CHART,6TH APRIL (WEEKLY OPTION CHART 13TH APR 17600CE)
NIFTY 1 MIN APRIL FUTURE CHART,6TH APRIL
 SESSION (4)
TRADING PSYCHOLOGY IN SCALPING
TRADING PSYCHOLOGY
Unlike many other forms of trading, scalping requires trader to be very
active, attentive, and diligent throughout the trading day. Lapses in
concentration and discipline can cost big money.
Focus on greed and fear and anxiety, follow the entry exit rule, and
follow it strictly, remind yourself that It’s not possible to make profit in
every trade.
Losing a trade is not a shame, hitting your stop loss doesn’t mean you
are a loser, remind yourself even best of the traders in the world have a
win rate of around 60%, means around 40% trades still hits their stop
loss.
Avoid FOMO in Scalping, if you miss one opportunity another one is
just few minutes away, but don’t run after the Trade and don’t force the
Trade.
Have trust in your strategy, few losing trades doesn’t mean strategy
stopped working, its common to go through drawdowns in Trading.
Back test your strategy and gain massive confidence in your trading.
This refers to how your trading strategy works with past data to decide
if it has an edge in the markets.
TRADING PSYCHOLOGY TIPS FOR SCALPING

✓Practice With a Paper Trading Account

✓Choose Your Favourite Patterns and Stick to Them
✓Journal your activity
✓Accept that the Market is Random
✓Take a mandatory break during losing streak
✓Assume Your initial Losses as a tuition fee
✓Cut Your Losses Quickly to Preserve Your Trading Psychology
THINGS TO REMEMBER BEFORE BECOMING A SCALPER

Scalping is most difficult compared to any form of Trading, like day trading
or swing trading or positional trading or investment etc.
So, start scalping with a paper trading demo account and practise, initially
don’t risk real money, chances are very high that you may lose it quickly
by not able to handle emotions like greed, fear, anxiety, confusion or by
over trading or revenge trading.
There are many platform provides paper trading, there are many websites
available online where you can do free paper trading, without risking real
money, so start with that.
Scalping is not for part time traders, its only for full time traders, who can
dedicate entire time in watching price action on the chart.
Scalping on mobile phone may not be suitable for Scalping, one need to
watch price action candles by candle along with support resistance etc,
so needs immediate access to punch the orders, so at least one
laptop(for chart analysis) plus one mobile(for punching the order) will be
ideal to start with.
Scaling in and scaling out may not be ideal in initial days, especially
scaling out, so better to go for all once in and once out, during initial
days.
Executions in entry/exits needs lightning speed in scalping, sometimes
within seconds it can move, by the time you punch the orders price will
be somewhere else, in such cases leave that trade, because you get
many entry opportunities in scalping.
Scalping is not for very beginners who are still in learning phase of
price action, technical analysis etc, so don’t risk real money, until you
get good price action knowledge and experience.
Scalping is a big “NO” for Traders who are in-disciplined and Traders
who are struggling with Trading psychology.
Scalping may not be suitable for all individuals (even if they are
experienced Trader) so before risking real money do practise with
paper trading and ask yourself whether Scalping suits your personality
and your psychology.
OUR OTHER COURSES
THANK YOU