“An Intraday Trading Methodology”

2010·8.19 MB·english

by  Ultimate Scalper

“An Intraday Trading Methodology”
ATTENTION!!!!!
CAUTION!!!!
BEWARE

The other Ultimate Scalper
Manual uploaded to Z-
Library is a fake and can lead
you to serious losses. Only
the original purchased at
www.UltimateScalper.com
Is Legit and for real.

Copyright 2010, Ultimate Scalper LLC.
THERE IS ANOTHER Ultimate Scalper
Manual
“An intraday Trading Methodology”
ON ZLIBRARY, IT WAS
INTENTIONALY ALTERED WITH
MISLEADING AND INCORRECT
INFORMATION BY MY COMPETITORS
TO MAKE YOU FAIL AT TRADING SO
YOU PURCHASE THEIR COURSES.
DON’T BE FOOLED

All rights reserved. No part of this document may be reported or
transmitted, in any form or by any means, electronic, mechanical,
photocopying, or otherwise, without the prior written permission of the
publisher and author.

Ultimate Scalper LLC

Copyright 2010

Copyright 2010, Ultimate Scalper LLC.
Only the original purchased
at www.UltimateScalper.com
Is Legit and for real.

Required Legal Disclaimer

Risk Disclosure Statement for System Traders:

Commission Rule 4.41(b)(1)(I) hypothetical or simulated performance results have
certain inherent limitations. Unlike an actual performance record, simulated results do not
represent actual trading. Also, since the trades have not actually been executed, the
results may have under- or over-compensated for the impact, if any, of certain market
factors, such as lack of liquidity. Simulated trading programs in general are also subject
to the fact that they are designed with the benefit of hindsight. No representation is being
made that any account will or is likely to achieve profits or losses. There have been no
promises, guarantees or warranties suggesting that any trading will result in a profit or
will not result in a loss.

Hypothetical performance results have many inherent limitations, some of which are
described below. No representation is being made that any account will or is likely to
achieve profits or losses similar to those shown. In fact, there are frequently sharp
differences between hypothetical performance results and the actual results subsequently
achieved by any particular trading program.

Copyright 2010, Ultimate Scalper LLC.
One of the limitations of hypothetical performance results is that they are generally
prepared with the benefit of hindsight. In addition, hypothetical trading does not involve
financial risk, and no hypothetical trading record can completely account for the impact
of financial risk in actual trading. For example, the ability to withstand losses or adhere to
a particular trading program in spite of trading losses are material points which can also
adversely affect actual trading results. There are numerous other factors related to the
markets in general or to the implementation of any specific trading program which cannot
be fully account for in the preparation of hypothetical performance results and all of
which can adversely affect actual trading results.

The methods described in this manual are for educational purposes only. Past results are
not necessarily indicative of future results. The author and publisher assume no
responsibility for your trading results. Trading involves a high degree of risk. No
recommendation is being made to buy any stock, commodity, option or other financial
instrument. Consult your financial advisor before starting any investment system.

“10 Year Update and Revision Notes”
(Please Read)

Thanks again for purchasing the Ultimate Scalper Course. I can’t believe it’s
already been 10 years since I first sat down to write this manual. Please take the
time to read this revision, as it may answer some of the questions you may have
after going through the course. I will try to answer some of the more frequent
questions I have gotten in the last 10 years from my thousands of clients and
make a few updates as well.

Originally this was to be an “intraday” or “daytrading” course specifically written
for the E-mini S&P 500 contract, because that is what I traded. Please
understand that you are not limited to trading the E-mini S&P, “OR” to just
intraday trading for that matter. Even though the examples, charts and videos are
of the E-mini, by no means are you limited to it. I currently use the same methods
in this manual to trade stocks, futures, options, ETF’s and even have clients who
trade Forex. There are no limits to the different time frames you can use with
these systems. Although it mainly focuses on a 987 tic chart, by no means are
you limited to that. Many day traders are finding success with 1000 tic, 1,3, 5, 15
minute charts. If those timeframes seem to fast, slow it down with the 4181 tic
chart. I personally use all the same methods on daily charts to pick stocks, ETF’s
and options for a longer duration trades of a few days to a few weeks. Once you
learn the foundation of what’s in this course, you can transfer what you learn to
any time frame you choose. The only real requirement is whatever you trade
must have some volume and volatility. With all of that being said, if you do look at

Copyright 2010, Ultimate Scalper LLC.
different time frames, you may want to adjust the MACD settings to suit your time
frame. The settings in this manual along with the custom indicator generating buy
sell signals are set for the 987 tic and 1 minute charts. I find the MACD standard
settings of 12,26,9 are great for daily charts on most securities.

I get a lot of questions about brokers and platforms. I mention in the manual that I
use and have used “Tradestation”, I also use “Think or Swim aka…TOS” from TD
Ameritrade, and “Ninja Trader”. The point is, there are many different platforms
and brokers to chose from. Every platform will have the same indicators
mentioned in this manual. Do your research and chose the broker/platform that
fits your needs or suits you best. When I originally wrote the course, I was using
“Tradestation” and the settings I have described in the manual coincide to the
available setting options for that platform at that time. Those settings may not be
available in all platforms any longer. DON’T WORRY IF YOU CAN’T SET
THOSE EXACT SETTINGS!!! As far as the MACD goes, I like to use the 5,26,9
settings where the standard setting is usually 12,26,9. It will fire a signal sooner,
however will have more false signals on time frames other than 987 tic.
Remember, this course is teaching interday scalping techniques for the E mini
S&P 500 the way I do it. I use the Stochastic Slow indicator. If you don’t see it in
your platform, use the regular Stochastic indicator. Again it will work fine at the
standard settings, usually something like 80,20,10,10, HIGH, LOW, CLOSE,
SIMPLE. For Ninja Trader, I was told that the following settings are useful: %D-4,
%k-6 and smoothing 6. What we are looking for is divergence between where the
price is going and where the MACD is going. Learn what divergence is. The
better your understanding of divergence, the easier you will spot successful
trades.

I mention in the manual that for the Double Top and Bottom
system price needs to meet or exceed the first top or bottom. There
will be many instances where if it comes close to the first top or
bottom and the divergence is there, go ahead and take the trade.

The 50 EMA “Tornado” indicator: I still like the 50 EMA it’s a great tool. However
for day trading I have now switched the 50 to 20 in the settings, especially when
using the 987 tic charts. I find that the 20 EMA acts better as a support when
price is trading above the 20 EMA and as resistance when price trades below it.
You can use both on your charts just change the colors of each as you see fit.

Copyright 2010, Ultimate Scalper LLC.
BY FAR THE BEST AND MOST PROFITABLE
SYSTEM IS THE
BACK DOOR AND 25 & 29 BAR. THEY ARE
NOT IN THIS MANUAL WATCH THE VIDEOS
IN THE SILVER COURSE

WWW.ULTIMATESCALPER.COM

The “30 minute after the open” strategy.

This is the free system that I give away to everyone interested in the course.
Over the years I have had many questions about where to place the stop loss on
this system. Everyone should have access to the video of this system already. In
the video I have the charts set to 30 minute bars for demonstration purposes. In
real life you will want to set your charts to 3 or 5 minute bars. Again, we buy after
a breakout of the highest price reached in the first 30 minutes. Conversely, we
sell the breakout of the lowest low of the first 30 minutes. Place your stop loss
one tick above the previous bars high (bar immediately before the breakout bar)
for short trades and one tick below the previous bars low for long trades. Try not
to enter the trades on .00’s or .50’s if possible. We rather make our entries on
.25’s or .75’s

Crossover System Yellow & Purple moving average lines.

Settings for this system are as followed: The purple line is an exponential moving
average or EMA, its settings are set to 9. The yellow line is an exponential
moving average (EMA) with its settings set to 3. I use this system as a primary
entry, as well as secondary confirmation for other systems and entries. I use it on
the 987 tick charts.

Copyright 2010, Ultimate Scalper LLC.
The RSI Relative Strength Indicator

I recently added the RSI to the bottom of my indicator stack. In its standard
settings, it helps to identify divergence like the MACD blue line and the
Stochastic. Its just another way to help me confirm divergence. See the example
below of all three indicators showing divergence from price.

Copyright 2010, Ultimate Scalper LLC.
Ultimate Scalper Custom Indicator

The custom indicator that generates buy and sell arrows is designed to get your
attention to a possible trade setup. By no means are you supposed to enter a
trade on every arrow. When an arrow is being generated and catches your
attention, its time for you to use all the other factors available to you combined
with what you have learned in this manual and videos to make an educated
decision to either place a trade or pass on it. The indicator will generate many
arrows throughout the day and is an excellent learning tool designed to be used
on the 987 tic charts only.

FOR INSTRUCTIONAL VIDEOS ON ALL SYSTEMS RECORDED LIVE PLEASE GO TO

WWW.ULTIMATESCALPER.COM

Copyright 2010, Ultimate Scalper LLC.
Table of Contents

Introduction ......................................................................................................................... 1
Welcome, ............................................................................................................................ 2
E-mini S&P ......................................................................................................................... 2
ESH10 ................................................................................................................................. 3
ORDER TYPES .................................................................................................................. 3
Market Order ....................................................................................................................... 3
Limit Order ......................................................................................................................... 4
Stop Order ........................................................................................................................... 5
Trading Platforms Charts and Brokers ............................................................................... 7
Charts & Candlesticks....................................................................................................... 10
Trends ............................................................................................................................... 18
Trend Lines ....................................................................................................................... 21
Support and Resistance ..................................................................................................... 34
Support .............................................................................................................................. 34
Resistance ......................................................................................................................... 34
Floor Trader Pivots ........................................................................................................... 42
Indicators........................................................................................................................... 47
The 50 EMA Indicator “The Tornado” ............................................................................ 47
Volume .............................................................................................................................. 52
Volume Probability Test ................................................................................................... 54
Final Upward Push and Final Downward Push Bars ........................................................ 60
SYSTEMS......................................................................................................................... 77
THE DOUBLE TOP DOUBLE BOTTOM SYSTEM ..................................................... 80
MACD Indicator ............................................................................................................... 83
Convergence Divergence Push Pull .................................................................................. 84
Stochastic Slow Indicator ................................................................................................. 86
Double Tops and Double Bottoms .................................................................................... 89
System Definition & Conditions ....................................................................................... 97

Copyright 2010, Ultimate Scalper LLC.