Smart Money Trading Insights

Mastering Price Action & Market Manipulation Strategies

Advanced Scalping Strategy Course: Revealed Techniques

Scalpers and day traders should explore these advanced strategies combining Price Action Analysis with Smart Money Trading concepts. These setups aim to capture quick market moves by understanding underlying dynamics like liquidity and market structure.

Video: Advanced Scalping Strategies Explained

This video details several high-probability scalping setups, including failed breaks, market structure shifts, VWAP confluences, Fair Value Gaps, and Fibonacci retracements, focusing on alignment with Smart Money Trading intentions.

Strategy 1: Failed New High/Low of the Day

This scalping setup leverages Price Action Analysis and market structure by catching moves when price fails to sustain a break above the previous day's high or below the previous day's low. This often signals a reversal opportunity, aligning with potential Market Manipulation Strategies like liquidity hunts around key levels.

Trading the Failed Break:

  1. Identify the previous day's high and low (key reference points).
  2. Observe price action approaching these levels, looking for hesitation or rejection.
  3. Wait for a break followed by a quick reversal back across the level. This is the trigger.
  4. Seek confirmation (reversal candlestick, momentum shift, volume increase).
  5. Enter in the direction of the failure (short on failed high, long on failed low).
  6. Place stop loss beyond the failed high/low point. Target previous swing points or the opposite day's level.

Understanding liquidity is key; previous day highs/lows often hold stop-losses, which smart money may target, creating the failed break setup.

Strategy 2: Pullback After Market Structure Shift (MSS)

This scalping strategy uses Price Action Analysis and Smart Money Trading concepts to trade pullbacks after a clear change in market trend (Market Structure Shift, or MSS). An MSS occurs when price breaks a key previous high or low, suggesting institutional players are shifting their bias.

Trading the MSS Pullback:

  1. Identify a clear break of a previous swing high or low (the MSS).
  2. Wait patiently for price to pull back towards the broken level (don't chase).
  3. Watch for signs of the dominant force re-entering (rejection candle, momentum shift, volume spike) at the broken level.
  4. Enter in the direction of the original break upon confirmation.
  5. Place stop loss just beyond the broken level. Aim for quick profits.

This method aligns you with smart money after they've shown their hand, trading the retest of the broken structure.

Strategy 3: VWAP and Engulfing Candle Scalping

This setup combines the Volume Weighted Average Price (VWAP), a key benchmark for institutional traders, with the engulfing candlestick pattern, a strong Price Action Analysis reversal signal.

Trading the VWAP Engulfing Bounce:

  1. Monitor the VWAP line on your intraday chart.
  2. Watch for price to approach the VWAP line.
  3. Look for an engulfing candle (bullish or bearish) forming at or near the VWAP.
  4. Confirm the bounce: Price moves away from VWAP in the engulfing candle's direction.
  5. Enter in the direction of the engulfing candle after confirmation.
  6. Place stop loss just beyond the opposite side of the engulfing candle. Target the next significant level.

VWAP often acts as dynamic support/resistance. The engulfing candle signals a shift in the supply/demand balance at this key level, potentially indicating alignment with Smart Money Trading flow.

Note: Avoid this strategy in very choppy markets where VWAP is frequently crossed. Consider volume analysis and market structure context. An exact touch of the VWAP isn't always required.

Strategy 4: Fair Value Gap (FVG) Fill After Breakout

This strategy capitalizes on market inefficiencies (Fair Value Gaps) created during strong breakouts, often linked to Smart Money Trading activity. FVGs are typically three-candle patterns where a large candle's wicks don't overlap with its neighbors.

Trading the FVG Fill:

  1. Identify a significant support or resistance level.
  2. Watch for a strong breakout of this level.
  3. Identify a Fair Value Gap formed during the breakout move (three-candle pattern).
  4. Wait for price to retrace and fill this gap (market inefficiency seeking balance).
  5. Look for confirmation that price will resume the breakout direction after filling the gap (reversal candle, bounce off broken level).
  6. Enter in the direction of the original breakout upon confirmation.
  7. Place stop loss below the original breakout level (for longs) or above (for shorts).

This Price Action Analysis setup combines breakouts, gap-filling tendencies (market efficiency), and retests, offering a systematic entry approach.

Strategy 5: Break of Structure & Fibonacci Golden Zone

This method combines market structure analysis (Break of Structure - BoS) with Fibonacci retracements, focusing on the high-probability "Golden Zone" (between 61.8% and 78.6% levels) for entries aligned with the potential continuation of the trend initiated by Smart Money Trading.

Trading the Fibonacci Golden Zone Pullback:

  1. Identify a clear Break of Structure (BoS) – price breaking a significant previous high (uptrend) or low (downtrend).
  2. Mark the swing that caused the BoS (low to high for uptrend, high to low for downtrend).
  3. Draw the Fibonacci retracement tool on this swing.
  4. Wait for price to pull back into the Golden Zone (61.8% - 78.6%).
  5. Look for confirmation signals within the Golden Zone (candlestick patterns, volume shifts, rejection).
  6. Enter in the direction of the original BoS upon confirmation.
  7. Place stop loss just beyond the opposite side of the Golden Zone. Target next key market structure levels.

This strategy leverages the observed tendency of price to retrace to key Fibonacci levels after a confirmed shift in market dynamics (BoS), providing structured Price Action Analysis entries.

Conclusion: Integrating Advanced Scalping Techniques

These advanced scalping strategies offer systematic approaches to day trading by combining detailed Price Action Analysis with an understanding of Smart Money Trading concepts and potential Market Manipulation Strategies. Focusing on key levels, market structure, volume, and specific patterns like engulfing candles or FVGs can provide higher probability entries. Remember to consider market context, confirmation signals, and proper risk management.

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