# Scalping (short trades) Scalping = short trades on low timeframes, where the market is constantly noisy, so the main task is not to guess, but **to enter only where the price has a reason to react!** The scalper’s task is not to catch a “big trend,” but to repeatedly take **small price moves**. This is exactly what a separate strategy in the Midas settings is for — it helps: * quickly and accurately identify the trend (where it is being pushed), * find the zone of interest (from where there will be a reaction), * get a trigger (the “start” button) ### 🤓For beginner scalpers Set up the indicator:
* Strategy and number of signals - **"Scalping**⚡️**"** (signals appear fairly quickly, but there will be less noise than in **"Scalping⚡️⚡️"**) * Anti-trend signal filter - "Price channel" (signals against the trend will be automatically hidden) * Set the same settings in the lower indicator for synchronized operation If you are a beginner or get confused, use only one lower timeframe and that’s it (for example, 5 minutes) - no need to be a hero until you can repeat the algorithm 20 times in a row: * Step 1. Using [the price channel](/faq-en/faq-midas-up/price-channel.md) we look for a clear trend - it’s enough to look at the color and slope (green up - go long, red down - go short, yellow sideways - skip) * Step 2. Using the channel boundaries, determine the zone of interest from which we will open a position (if the trend is bullish and the channel is pointing up - go long from the lower boundary of the channel, if the trend is bearish and the channel is pointing down - go short from the upper boundary of the channel) * Step 3. We wait for confirmation of a bounce from the zone of interest - several candles cannot break through the level, after the bounce and candle close a Buy / Sell signal appears
* Step 3. When the price approaches the zone of interest according to Step 2, wait for confirmation using a Buy / Sell signal and open a trade in the direction of the trend - approximate targets and stop will be set on the chart automatically
🎯STEP-BY-STEP TRADING ALGORITHM **Step 1. Look at the trend using the price channel** * Trend up = look for longs (from the lower boundary of the channel) * Trend down = look for shorts (from the upper boundary of the channel) * Sideways (yellow channel) = skip to avoid getting stopped out **Step 2. Wait for price to reach the zone of interest** * Price reached the lower boundary of the channel and got a reaction = long * Price reached the upper boundary of the channel and got a reaction = short **Step 3. Entry** * You wait **for the candle to close** and for confirmation of the bounce from the channel boundary (several candles failed to break through) * You enter **after the signal**, stop beyond the zone / edge of the channel **Step 4. Exit** * If price takes the first take profit, lock in 50%, move the stop to breakeven * The main target is the nearest channel boundary / level / liquidity (don’t be greedy) To avoid blowing the deposit in 2 hours: * No level = no trade, a signal “in the air” = garbage! * Don’t go against the trend. Want to trade countertrend? First read the entire FAQ! * Always wait for the signal on candle close. Scalping without this turns into chaos * Always wait for confirmation - several candles could not break the level * Risk per trade: **0.5–1%**, stop is mandatory, the first 20 trades are better taken on micro size Mini self-checklist: * Does the price channel show direction? ✅ * Is price at the channel boundary? ✅ * Buy/Sell in the direction of the channel? ✅ * Has the candle closed? ✅ * Stop beyond the channel boundary? ✅ * Take profit at the next zone? ✅
### 🎯Visual examples of how to trade and how not to trade {% tabs %} {% tab title="✅Long trades" %}
We see a clear uptrend - the green price channel is pointing up We wait for price to approach the zone of interest - the lower boundary of the channel We wait for bounce confirmation and a signal - open a long We close the position at the upper boundary of the channel Trades “in the air”, even if there was a signal, are skipped - we trade only from levels {% endtab %} {% tab title="✅Short trades" %}
We see a clear downtrend - the red price channel is pointing down We wait for price to approach the zone of interest - the upper boundary of the channel We wait for bounce confirmation and a signal - open a short We close the position at the lower boundary of the channel Trades “in the air”, even if there was a signal, are skipped - we trade only from levels {% endtab %} {% tab title="❌Signals in the air" %}
Signals “in the air” - the channel is pointing down, the trend is bearish: * ❌**Bad:** Sell appeared in the middle of the range, not at the upper boundary of the channel * ✅**Good:** Sell appeared at the upper boundary of the channel in the direction of the trend {% endtab %} {% tab title="❌Signals against the trend" %}
Signals “against the trend” - always a short move, high risk, frequent stops * ❌**Bad:** Buy in a red channel when the trend is bearish * ✅**Good:** Buy in a green channel when the trend is bullish {% endtab %} {% endtabs %} ### 😎For advanced scalpers Set up the indicator:
* Strategy and number of signals - choose **"Scalping⚡️⚡️"** (the most aggressive strategy with the maximum number of signals, the fastest signal appearance speed) * Anti-trend signal filter - if we trade only with the clear trend, choose "Price channel" (you can test other filters and review them on history), if you want to see all signals and filter manually - skip this filter * Set the same settings in the lower indicator for synchronized operation To cut out as much noise as possible, take precise entries only from strong zones of interest, and confirm entries with several triggers - use three timeframes: * **1 hour**: look at the trend/sideways movement - where it even makes sense to trade (on the upper indicator - [EMA](/faq-en/faq-midas-up/ema-moving-averages.md) and [channel](/faq-en/faq-midas-up/price-channel.md), on the lower indicator - обязательно [money flow](/faq-en/faq-midas-down/money-flow.md) to determine the market bottom/peak and the direction of money and follow large capital + [trend ribbon](/faq-en/faq-midas-down/trend-ribbon.md) to determine the current wave) * **15 minutes**: look at the zone of interest ([horizontal levels](/faq-en/faq-midas-up/support-and-resistance-levels.md), [price channel](/faq-en/faq-midas-up/price-channel.md), [liquidity heatmap](/faq-en/faq-midas-up/liquidity-heat-map.md), [profile of horizontal volumes](/faq-en/faq-midas-up/horizontal-volume-profile.md)) * **5 minutes**: find the entry (we look at signals only on the lower timeframe - on higher timeframes we ignore signals)
🎯STEP-BY-STEP TRADING ALGORITHM **Step 1. Context (1 hour)** * Trend up = look for longs (from EMA, levels, or the lower boundary of the channel) * Trend down = look for shorts (from EMA, levels, or the upper boundary of the channel) * Sideways = trade only from levels, no EMA and no “signal in the air” * Confirm the strength of the level with shelves of [horizontal volumes](/faq-en/faq-midas-up/horizontal-volume-profile.md) **Step 2. Zone (15 minutes)** * Price came to a **strong level** or channel boundary or horizontal volume * Nearby there is [liquidity](/faq-en/faq-midas-up/liquidity-heat-map.md) (as a target, or where price may “push into before reversing”) **Step 3. Entry (5 minutes)** * Wait **for the candle to close** for confirmation of a bounce from the zone of interest * Enter **after the reaction** (not at the level, but from the level), stop beyond the zone of interest * Do not place the stop in the liquidity zone (purple stripe), the price may take that liquidity together with your stop * Risk per trade: 1–2% (in scalp trading this is not advice, it’s survival) **Step 4. Exit** * Take profit: the next strong level **or** the nearest major liquidity * If price “sweeps liquidity” and reverses, don’t be greedy - lock in profits or scale out: 50% immediately, the rest depending on the situation Mini self-checklist: * 1 hour: clear trend and context? ✅ * 15 minutes: strong zone? ✅ * 5 minutes: reaction present? ✅ * Additional triggers confirmed the trade? ✅
{% hint style="info" %} We look at Buy / Sell signals only on the lower timeframe where we determine the entry; on higher timeframes we do not pay attention to signals - they are needed only for trend and strong level analysis. {% endhint %} ### ⚙️Midas Up settings preset for scalping Let’s go through the top tools of the upper indicator - what to enable/study so it’s useful, not just pretty. You can hide the rest to reduce chart clutter: 1. Trend (the direction we trade in) * Simple way - [price channel](/faq-en/faq-midas-up/price-channel.md) (shows the local trend and the channel boundaries from which a bounce may occur) * Advanced way - [EMA 20 50 100 200](/faq-en/faq-midas-up/ema-moving-averages.md) (thanks to 4 different moving average periods, you can quickly understand the local and global trend) 2. Levels (zones of interest on the upper indicator from which price will react) * For a clear trend - [price channel](/faq-en/faq-midas-up/price-channel.md) (we wait for a reaction from the channel boundaries) * For sideways movement - classic horizontal [support and resistance levels](/faq-en/faq-midas-up/support-and-resistance-levels.md) * For determining targets and stops - [liquidity heatmap](/faq-en/faq-midas-up/liquidity-heat-map.md) (shows where price will be magnetized to - where you should not place a stop) 3. Confirmations (additional triggers for opening a trade) * [Buy / Sell signal](/faq-en/signals-and-strategy.md) - is not a “command to enter,” but only a “reason to open the chart” or an additional confirmation of the setup (for example, the trend is bullish, price pulled back to a support level, a bounce upward started, and we got a Buy signal - this is confirmation) * [Buyer / seller pressure](/faq-en/faq-midas-up/candlestick-hints.md#davlenie-krupnykh-igrokov) - these are the green and red circles near the candle; for a long trade, a green circle is good, for a short trade - a red circle. ### ⚙️Midas Down settings preset for scalping Similarly, let’s go through the top tools of the lower indicator - what to enable/study so it’s useful, and what can be hidden to reduce chart clutter: 1. Trend (we confirm the direction we trade in) * Global - [money flow](/faq-en/faq-midas-down/money-flow.md) (shows the big picture and where the money is going very well) * Local - [trend ribbon](/faq-en/faq-midas-down/trend-ribbon.md) (shows the current wave structure very well without noise) 2. Confirmations (additional triggers for opening a trade) * [Price impulse](/faq-en/faq-midas-down/price-impulse.md) - replaces all oscillators and shows the strength and speed of the impulse much more accurately, and the points on it show the moment the impulse reverses earlier than anything else * [Scale with overheat of 6 main oscillators](/faq-en/faq-midas-down/overheating-by-6-oscillators.md) - quickly and conveniently shows the overall picture of where the market is moving price (when the scale becomes broadly colored) and where it reverses (when the colors broadly disappear) ### 🔔Alerts for scalping * Set alerts so that they come **after the candle closes**, otherwise there will be spam - while the candle is open, signals may blink, but after close they never repaint * On the lower 5-minute timeframe, set alerts for BUY / SELL * On the 15-minute timeframe, set alerts for [**bounce from the level**](/faq-en/alert-setup.md) * If you need alerts in Telegram - detailed [instructions here](https://faq.midas-club.com/alerty-v-telegram). ### 📊How to test the indicator on historical data Method 1: open settings and uncheck "Show only the last signal" - all past signals will be displayed - they do not repaint after candle close, so you can analyze how and where they appeared, and find patterns that work Method 2: open settings and choose the indicator operating mode ["Auto tester"](/faq-en/operating-mode.md) - this way you will see a table with statistics for the last week / month / year, which includes signal statistics and their P/L, stops, win rate, etc... ### ❓Frequently asked questions about scalping
On which timeframes should you scalp at all? **Basics:** entries are most often on **1m–5m**, but it’s better to start with **5m**because there is less noise and hysteria there. On higher timeframes (15m/1 hour) look at **context and zones**, but not signals!
What to do if on one timeframe there is one signal, and on another timeframe - a different one? Buy / Sell signals work like waves and on each timeframe there is its own signal, unrelated to another timeframe. It is important to confirm a trade with a signal only on the timeframe on which we are looking for the entry. On the other timeframes, do not pay attention to the signals!
Where to place the stop in scalping? Classic: **beyond the level / beyond the zone**, so that the breakout truly invalidates the idea.\ And a separate rule: **do not place the stop in liquidity zones (purple stripes)**, those are exactly what often get “swept.”
Where is it more logical for a scalper to take profit? * nearest strong level * price channel boundary * nearest liquidity (as a “magnet/target”) * If you want discipline: take 50% profit quickly, manage the rest as the situation develops, but don’t turn scalping into a swing trade “because I believe”
Why is there so much noise on the 5-minute chart? Because 5 minutes is noise! Use the anti-trend filter. To hide all old signals - just click "Show only the last signal"
Why did the level not work? All levels get broken. Bet on strong ones where there were 2 reactions and confirm the bounce - wait for several candles that could not break through.
In scalping, should you enter immediately on the signal? No. A signal is **a reason to open the chart**, not a command to “go all in.” In Midas this is explicitly emphasized as a manual approach: the signal helps you analyze, you make the decision.
How do I avoid countertrend trades and suffering? Turn on **anti-trend filtering** (EMA or price channel). This is the basic way to remove all signals against the move.
EMA or price channel: what is better for a scalper? For a beginner, it’s easier **price channel**: it shows the direction and strength of the local trend and gives dynamic boundaries that are convenient to trade from.\ EMA can be left as extra confidence, but don’t set up a “double steering wheel” right away.
What to do if the market is sideways and the channel is yellow? Yellow mode = the market is chopping. In sideways movement it’s better either to **skip**, or (if you are no longer a beginner) trade **only from the boundaries / strong levels**, but under no circumstances in the middle of the channel. The price channel was created specifically to see this.
How to set alerts correctly for scalping? Logic: alert = “**open the chart**”, not “enter without thinking.” Set BUY/SELL on the 5-minute timeframe. Notifications can be received in the app/browser/email, etc., and the list/limits depend on the plan. See the special section for setup.
What is more important: level or signal? The level/zone is more important - no doubt. A signal **without a zone** often turns into an “entry in the air”.
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