0:03 Today I'm going to show you an amazing
0:05 scalping strategy that takes advantage
0:07 of the first 90 minutes of the market
0:09 open. It's called the quick flip
0:12 scalper. It's repeatable. It's
0:14 effective. And best of all, it is
0:17 simple. My name is Carl. I've been
0:19 trading for 20 years. One of the biggest
0:21 things that I've learned is that the
0:23 utmost majority of all the money that
0:25 traders make will take place in the
0:28 first 90 minutes. For us traders, this
0:30 is our bread and butter. If you want to
0:32 increase your chances of becoming a
0:34 successful trader, you've got to master
0:36 this market open. And to master it,
0:38 you've simply got to have the right
0:41 trading strategy. Otherwise, it's game
0:42 over. In today's video, I'm going to
0:44 show you how to use the quick flip
0:46 scalper strategy in just three simple
0:49 steps. I will present it the exact same
0:51 way it was shown to me back in 2011 and
0:54 the same way I have taught hundreds of
0:56 other traders. We have all used it day
0:59 in and day out to make solid trades for
1:01 years. Then after explaining the
1:03 three-step strategy, I will take that
1:05 process and I will trade the quick flip
1:08 scalper in a live market so that you
1:11 know how to apply it. Let's get started.
1:14 I love this quick flip scalper. I've
1:17 built a 15 plus year trading career off
1:19 of this strategy. Most people I show it
1:21 to like it as well because it's
1:23 straightforward and it doesn't require
1:26 any complex structure. Let's jump into
1:29 the three steps. Step one is to box the
1:38 Let me show you how. Open whatever asset
1:41 you are trading on a 15minut chart. For
1:43 this example, I'm going to use NASDAQ
1:46 100, but it works with any asset. Just
1:49 make sure it's a 15-minute chart. From
1:51 there, let the first 15 minutes of the
1:54 market open pass, allowing that candle
1:57 to completely close. Once that candle
2:00 has closed, use the box drawing tool to
2:02 connect the highest price point we see.
2:05 So, this very top of the wick, which
2:08 says 24675,
2:09 we are going to connect that with the
2:12 lowest price point we see, which is 24502.
2:14 24502.
2:16 and we're going to box that range in and
2:18 we're going to extend [music] it into
2:20 the future. And that's all for step one.
2:23 I told you it was going to be simple.
2:25 So, this is all you need to do. Just box
2:28 in the high to low range [music] and
2:30 then extend it. Now, let's move on to
2:31 step number two, which is a crucial
2:34 step. And the step is to confirm that
2:39 this candle is a liquidity candle.
2:42 Most likely, it is. And I will explain
2:45 why soon. And if it is, we are on to
2:47 something special. A liquidity candle is
2:50 a fast aggressive candle moving up or
2:53 down. The direction doesn't matter. It's
2:56 fast. It's aggressive and it's moving in
2:58 one direction. But it's more than just a
3:01 candle. It's an emotional event and that
3:03 is where the edge is. When traders
3:06 worldwide see this, their very first
3:08 instinct is to chase into that strength
3:11 or weakness, fearing that they will miss
3:14 out on that trading opportunity. And
3:16 that's exactly what these candles and
3:18 the price movements are designed to do,
3:21 to pull [music] in inexperienced retail
3:24 traders to create liquidity for the
3:26 [music] big institutions to get in and
3:28 out of their trades. This price movement
3:31 actually needs to happen in order for
3:34 those institutions to get [music] in and
3:36 out of their positions. And that is why
3:38 you will see them almost every day. This
3:42 [music] often involves a uh a stop hunt
3:44 where the price aggressively moves in
3:47 one direction to trigger clusters of
3:50 stop- losses from us retail traders.
3:53 These triggered stops will create a
3:55 liquidity pool uh liquidity pool that
3:57 the large institutions need in order
3:59 [music] to fill their positions without
4:02 negatively affecting the price. Without
4:04 this engineer liquidity, the big players
4:06 wouldn't be able to execute their trades
4:09 uh at least not efficiently without
4:12 negatively affecting their entry and
4:14 exit levels. The best explanation comes
4:16 from old school trader Dr. David Paul.
4:19 The best trades occur after the masses
4:21 have been stopped out. And that's
4:23 because the big fellas up there, they
4:25 can't press the we button and get in
4:28 because there's just not enough liquid
4:30 liquidity there for them to get in in
4:33 size. So they have to in fact engineer a
4:37 100,000 guys like you, sir, pull you one
4:40 way, your stop loss gets hit. That in
4:42 fact sets off a sea of liquidity for
4:44 them to get in. So yeah, these uh
4:47 candles they are engineered and that is
4:49 why I like to call them manipulation
4:51 candles and they happen almost daily so
4:53 that these big players [music] can get
4:55 in and out of their trades. So the most
4:58 important thing to understand how this
5:00 quick flip scalper takes advantage of
5:03 this very phenomenon is that when you
5:07 see these candles most of the time the
5:09 candle is reversed and right there
5:11 that's the strategy that is the edge
5:13 that we will be using. Now, if there is
5:14 any doubt in your mind whether or not
5:17 the candle you are looking at is or is
5:19 not a manipulation candle, let me show
5:21 you a quick and easy way to figure that
5:23 out. So, what we want to do is to switch
5:26 to a daily chart of the asset that we're
5:28 trading and we're going to add the
5:31 average true range indicator. You don't
5:32 have to make any adjustments to it. Just
5:36 use the uh default settings of 14 days.
5:38 This indicator will give us a numerical
5:40 value. In this case for NASDAQ, it is
5:44 420 points. Let's go ahead and make the
5:46 math a little bit easier and uh write
5:48 400 points.
5:51 What does these 400 points represent?
5:54 Well, they represent the average range
5:57 of NASDAQ 100 in the last 14 days. So,
6:00 it's either up 400 points or down 400
6:03 points on any average day. So, the
6:05 trading range is one of the most
6:07 important parameters for us as traders.
6:10 whether you use this quick flip scalper
6:11 or not. Here is what we want to
6:15 determine back on the 15minute chart. If
6:17 the size of this candle that we just
6:22 boxed in is 25% or more of that daily
6:26 range, then it is a manipulation candle.
6:28 So, here's the basic math to figure that
6:30 out. We take these 400 points, right?
6:34 and we multiply it with 25%.
6:37 And you will have 100
6:39 100 points.
6:41 points.
6:45 So if the high of that candle to the low
6:48 of that candle exceeds 100 points, it is
6:51 in fact a manipulation candle. So you
6:52 will see that the very low of this
6:54 candle is 24,52
6:58 points and the very high is 24,675
7:02 points. And yeah, that is well outside
7:04 the 100 points range. So this is
7:07 definitely a manipulation candle. So one
7:09 thing to think about is that if it's at
7:12 95 points or 90 points, let's say that
7:15 it's around 22 23%, don't sweat the
7:17 details. You can still use it. But if
7:20 it's 25% or more, that is a dead
7:23 giveaway that it's being manipulated. So
7:25 that wraps up step number two, which
7:27 also was pretty simple. All right. Now,
7:29 let's move on to the third and last
7:31 step, which is to make the perfect entry.
7:38 This is going to be pretty simple, too.
7:40 So, here is what we're going to do.
7:42 We're going to go back to that 15-minut
7:44 chart, and we're going to move it to a
7:46 smaller time frame, and that can be the
7:49 five minute time frame or anything below
7:52 that. So, we can do 3 minute, we can do
7:54 two minute, and we can even do the one
7:56 minute time frame. I prefer to use the
7:57 five minute because that is what I'm
8:00 used to and uh that's what I'm going to
8:01 use now for the rest of this
8:03 demonstration. Now from here what we
8:05 need which is the most important part of
8:08 the video we need one out of two types
8:10 of candles to appear. They need to
8:12 appear outside the range outside the
8:15 range that we boxed in in step one. And
8:16 I say it's the most important part
8:18 because if none of these candles appear
8:21 the price is not ready to be reversed.
8:22 that movement could actually continue
8:25 for 20 minutes, 30 minutes, 40 minutes,
8:27 or an hour or like the rest of the
8:30 freaking day. It can just keep on going.
8:32 And we want one of these two candles to
8:35 appear again outside the box range. And
8:37 we want them to appear within 90 minutes
8:40 of the market open. So, if that doesn't
8:43 happen, the opportunity is lost and we
8:45 will not take the trade. [music]
8:47 If you know about reversal candlesticks,
8:49 if you watch some of my old videos, you
8:51 already know what the two types of
8:53 candles are. The two candles that I'm
8:55 going to be looking for are going to be
8:57 either the hammer or the inverted hammer
9:00 candle or the bullish or bearish
9:02 engulfing candle. Here's why these two
9:04 candles are important and why they must
9:05 be used in this trade setup. Let's start
9:07 with the hammer candle on the long side.
9:10 So, this must come after a clear red
9:14 negative price movement. The uh
9:16 confirmation comes from within the wick
9:19 [music] itself right here. This wick
9:22 represents that the largest buyer took
9:24 advantage of that liquidity and the
9:26 institutions bought into that weakness.
9:28 And I've said in past videos that you
9:30 have to think about it this way that if
9:32 someone [music] with that amount of
9:34 buying power is going to step in here
9:36 and buy that dip, it's not going to go
9:38 lower in most cases. And that is where
9:40 the edge is. They're just too big. They
9:42 are too strong. and they have announced
9:45 their intentions and most likely the
9:48 price will go higher from here. Again,
9:49 not all the time, but most of the time
9:51 it will. The entry is going to be very
9:53 simple. We're going to wait for the
9:54 break of the candle and we're going to
9:56 enter the trade in the opening of the
9:58 next [music] candle. So, we're going to
10:01 enter the trade here and the stop loss
10:04 would be set at the low. The inverted
10:06 hammer would be something that comes
10:09 after a clear positive green movement.
10:11 You would have the wick coming from the
10:14 top. Again, the confirmation comes from
10:19 within the wick itself right here.
10:21 The entry would be at the break of the
10:24 next 5minut candle here. And the stop
10:26 loss would be put slightly above [music]
10:29 the high here. Now the engulfing candles
10:31 have the exact same significance but
10:33 they look different. They are called
10:37 engulfing because this large candle here
10:39 fully engulfves the previous smaller
10:42 candle. For engulfing candles though, I
10:44 like to set the entry level already at
10:46 the high of the previous candle. So for
10:48 the bullish engulfing candle, I would
10:51 set my long entry already here at the
10:53 high of this red candle and I would
10:56 place the stop loss at the low of the
10:58 engulfing candle.
11:00 And for bearish engulfing candles, we
11:02 enter the short trade already at the low
11:04 of the previous green candle. So that
11:07 [music] would be here
11:10 and we place the stop loss at the high.
11:12 So if you didn't follow that, don't
11:13 worry. We're going to go through this
11:15 step by step now. So let's go ahead and
11:17 open up the NASDAQ 100 chart again. So
11:19 the day started with this positive green
11:21 liquidity candle, which means that we
11:23 are now looking for negative reversals
11:26 somewhere above this range. So, we're
11:28 looking for inverted hammers or bearish
11:29 engulfers [music]
11:31 above the boxed range. If the day would
11:34 have been a negative red liquidity
11:35 candle, we would instead be looking for
11:38 positive reversal candlesticks like the
11:41 hammer or the bullish engulfing candle
11:44 and we would look for it below the box
11:46 range. So, let's see how this day
11:48 continues. So, this is on the 15-inut
11:50 chart. We have confirmed that it's a
11:53 positive liquidity candle and we have
11:55 drawn up the box into the future. So
11:57 we're now going to go into a lower time
12:00 frame to look for the reversal. I will
12:01 use the five minute one. Let's see what
12:04 happens. We see that the price continues
12:07 up from here for a couple of candles.
12:09 It's not ready to be reversed yet, but
12:12 around here around 45 minutes after the
12:14 opening, something happens. You should
12:16 be seeing what I'm seeing now, which is
12:19 a inverted hammer candlestick. So the
12:22 entry would be very straightforward. We
12:23 would enter the trade here at the break
12:26 of the next candle. We set the stop
12:28 above the high and then we set the
12:30 target profit at the bottom of the box
12:32 that we've just drawn. So the box that
12:35 we drew has another purpose than just
12:36 showing where we are looking for the
12:39 reversals. It actually gives us two
12:42 irrelevant target profit levels. One is
12:43 the high of the opening and the second
12:45 one is the low of the opening that I
12:48 just used. So, our trade is set. Let's
12:50 see how this plays out. By the way, I
12:51 feel like I just have to mention this.
12:54 So, the win rate is actually higher if
12:56 you include the 15 minutes prior to the
12:58 opening. Not all brokers offer prices
13:00 outside market hours. But if you are
13:02 interested in that, uh there's a link to
13:04 the description to the broker that I
13:06 use. They are called IG. Just register
13:08 for a CFD account and you can get access
13:10 to these instruments. So, for the next
13:12 minutes, we're just messing around this
13:15 price level. Uh, we're not really going
13:17 anywhere. We're not hitting the stop
13:19 loss. But then, as you can see, the
13:21 price eventually goes lower. And if we
13:23 go even further, we see that we actually
13:25 reach the target profit here at the
13:28 bottom of the range. So, it was a
13:30 successful trade. We entered the trade
13:32 at 24,872.
13:36 We put the stop loss at 24,900.
13:44 So, the trade had a 28 point stop- loss
13:47 with a 212
13:49 points win. So, that's pretty good,
13:51 right? And this isn't cherrypicked. If
13:53 we look back, we had this pattern here
13:55 too. The day had a negative red
13:58 liquidity open. It reversed down here
14:00 and then finished higher. The day before
14:02 that, we had a green open, but it
14:05 reversed. And the day before that we had
14:07 a red opened, it reversed and it
14:09 finished green. Almost every time it
14:12 reverses. So the strategy works great
14:14 with these liquidity events and they
14:16 appear because uh the big institutions
14:19 need them to enter and exit their
14:22 positions. Over 255 years of trading
14:24 history and they are everywhere. Now let
14:27 me show you how to trade this live. It's
14:29 already 11:00 a.m., so I've missed the
14:32 open, but I will be back tomorrow to
14:34 trade this together with you. Okay, good
14:36 morning, guys. It's about 10 minutes
14:38 until the market opens. Remember the
14:42 steps. We are dialing in the 15minut
14:45 opening range. We are confirming that
14:49 it's a liquidity candle and we are
14:51 looking for a reversal candle outside
14:54 the range. If we don't get these three
14:56 things today, then I will come back
14:59 tomorrow. Uh, but if you are watching
15:02 this, it means that I kept it. And
15:05 spoiler alert, it means that it is
15:07 happening today. I forgot to mention
15:09 this yesterday, but these liquidity
15:11 events are often more prominent in
15:14 [music] individual stocks than in these
15:18 big indexes. the indexes often has more
15:20 base liquidity which means that these
15:22 manipulation candles are sometimes not
15:24 needed to the same extent for these big
15:26 institutions but as I showed you
15:28 yesterday they are there in the big
15:30 indexes too with that said I'm going to
15:33 trade this today on an individual stock
15:35 instead to show you that the quick flip
15:38 scalper works very well on that too
15:40 possibly even better and I think I will
15:41 do it with the highest volume stock
15:44 these days which is Nvidia so the market
15:47 opens in about 2 minutes. Uh let's start
15:50 by finding out what the average true
15:52 range is. So I'm going to pull [music]
15:55 up the daily chart. I'm going to add the
15:57 average true range indicator.
16:02 The average true range is 8.07 bucks. So
16:09 Let's go back to the 15minut time frame.
16:12 Now the market opens in a couple of
16:17 seconds. And uh here we go.
16:20 So, okay, it's opening with a small gap upwards
16:22 upwards
16:25 and now it's moving south. Remember, we
16:27 are waiting for the candlestick to close
16:29 before we can confirm that it's a
16:32 liquidity candle. And for it to be a
16:35 liquidity candle, it has to be 25% or
16:38 more of the average true range of the
16:40 last 14 days. While we wait for the
16:43 15-minute candle to close, we could
16:45 actually already now calculate what that
16:49 is. Average true range was 8.07 bucks.
16:53 To make it easier, let's say 8 bucks and 25%
16:55 25%
16:58 of that is two bucks. So that means that
17:00 if this candle will close with a range
17:03 that is more than two bucks, then it is
17:06 a liquidity candle. Okay. So, now it's
17:08 uh 30 seconds until this 15-minute
17:10 candle closes. It's not a perfect
17:13 looking liquidity candle as we have this
17:16 uh this wick here, but I think it's I
17:18 think it's good enough. Preferably, we
17:19 wouldn't have it, but I think it's okay.
17:22 The range is clearly exceeding two bucks
17:25 though. It's closer to five or even six
17:27 bucks. And there it's closed. So, it's
17:30 confirmed that it's a liquidity candle.
17:33 Okay. So, now let's take the box drawing
17:36 tool. Let's connect the highest price
17:39 point and the lowest price point and
17:42 [music] then we extend it into the future.
17:44 future.
17:47 And I'm only extending it for 75 minutes
17:50 from here. Uh because after that we
17:54 don't want to enter the trade. So any
17:57 reversal after these 90 minutes are
18:00 irrelevant. We only enter trades within
18:02 the first 90 minutes of the market open.
18:07 So the low is at 176 and the high is at
18:09 182. Okay. So that's the first two
18:11 steps. There is only one step left and
18:13 that is to find the reversal. Okay. So
18:16 this 15minut opening range that we just
18:18 made a box out of will be of big
18:19 significance for the rest of the day.
18:22 Now the only remaining thing the last
18:25 and third step is to wait for the
18:28 reversal candle outside of this range.
18:30 As this liquidity candle was negative,
18:33 we are looking for one of the two
18:35 bullish reversal candlesticks at any
18:38 place below this range. And if you
18:39 remember, we do that on a lower time
18:43 frame. So I'm changing the chart down to
18:46 a 5m minute time frame. And uh now we
18:49 just wait. So if we don't get this
18:52 reversal candlestick within 90 minutes,
18:54 then we don't trade it. We will get
18:56 another chance tomorrow. So, there's
18:58 nothing to do but to continue waiting.
19:01 So, some buyers are getting in here, but
19:03 not yet a full reversal. I think there
19:06 are still uh some big players that are
19:09 going to get in here. So,
19:12 uh I suspect we might go even lower.
19:15 Okay, here's another hammer candle, but
19:18 again, the hammer is inside the range,
19:21 which um which makes it invalid. You
19:23 want to see a hammer candle or a bullish
19:27 engulfing candle after a [music] strong
19:29 clear downward movement and below the
19:33 range. Okay, we continue down from here.
19:36 That's a big red candle and we're now
19:39 actually outside the range and another
19:42 big candle. If we would get some kind of
19:44 reversal pattern here down below the
19:47 range, then that's the time to enter the
19:51 trade. Okay, so look at that. We have a
19:53 strong green candle here that could
19:56 become a engulfing candle. But I'm going
19:58 to place my limit order entry level here
20:03 at the high of the red candle at 175.15.
20:05 175.15.
20:07 So if the price goes up to this level,
20:09 it is in fact a bullish engulfing
20:13 candlestick. So that's where we want to
20:16 enter the trade. So let's see. The price
20:18 is still going up. Let's see what
20:20 happens. Okay, we got it. We're now in
20:25 the trade. I will put the stop loss down
20:30 here below the low at 172.5
20:33 172.5
20:36 and I will put the target [music] profit
20:39 at the top of this range
20:43 which is at 182.3.
20:47 So that makes the stop loss around 2.65
20:50 bucks. The target profit is seven bucks.
20:56 So that is a riskreward ratio of um 2.7
20:57 or something like that. So let's see if
21:00 this reversal holds true. There are no
21:04 guarantees in trading. Um there are just
21:06 probabilities and this trade has a high
21:09 probability of uh of profit. So let's
21:13 see where it goes. So it's uh continuing
21:17 upwards actually. It's uh still strong.
21:19 We have a little bit of a hesitation
21:22 here. Still a long way to the stop loss
21:24 though there. I think this looks pretty
21:25 good. I think we have some good chances
21:28 to see this uh trade go through today.
21:31 Okay, look at that. Price is now back in
21:34 the range and that's promising.
21:38 Okay, so it's continuing up. Now, we've
21:41 been going sideways for a while, and at
21:43 this point, I would uh consider just
21:46 stopping the trade and taking the win
21:48 and call it a day as as we're so close
21:50 to the target profit already. But just
21:52 for the sake of the video, I'm going to
21:54 stay in the trade and I'm going to see
21:57 what happens. But I'm actually going to
21:59 move the stop loss to the bottom of the
22:04 range here at 176 so that we are at
22:06 least in the money. Okay. So, now we got
22:08 our target profit. And to be honest, I
22:10 was zoning out for a while. The time is
22:14 now 1:45 p.m. and uh made a great trade.
22:16 Uh this trade admittedly is a little bit
22:18 longer than usual. Uh normally you're in
22:20 and out [music] from the trade a lot
22:22 faster. Okay guys, that's going to
22:24 conclude today's video. I hope you found
22:26 value in this quick flip scalper
22:29 strategy. And if you are interested, I
22:31 have another one candlestick strategy
22:33 that is very, very effective but still
22:36 super simple. If you are interested in
22:38 that, give this video a thumbs up. Let
22:41 me know in the comments uh and I can
22:44 make a video for that one too. And I
22:46 want to end with one reminder that is
22:48 that historic results are no guarantee
22:51 for future results. So even though this
22:54 edge has been proven to be effective
22:56 over many decades, it might stop
23:00 working. And also although very strong
23:03 on most markets, this edge definitely
23:05 works better with some markets and worse
23:08 in others. So please evaluate the edge
23:11 regularly. And as always, take care,
23:14 trade well. Thank you guys for watching.
