Алексей Боровков – Scalping: The Art of Microscopic Profits. A Complete Guide for Traders (страница 5)

5.6. Exercise for practice

1. Open the chart with Volume Profile and VWAP.

2. Highlight the last 3-5 strong movements for the day.

3. For each movement, determine:

· From which level (POC, VAH/VAL, VWAP, High/Low) it started?

· What was the volume and delta at the starting point?

· Where did the movement end (which next level became a resistance)?

4. Look for repeating patterns for your instrument.

Chapter summary: Levels are not magic lines. They are areas of increased probability where the market microstructure (glass, tape, volumes) should provide you with confirmation. Your strength lies not in prediction, but in recognition: "Ah, the market is respecting this POC again, and big players are buying here. Therefore, I can join with minimal risk."

In the next chapter: We will learn the most aggressive and precise tactic: scalping on liquidity, where we will literally "read the minds" of large players hunting for stop orders.

Chapter 6: Liquidity Scalping: How the Market "Collects Stops"

6.1. Liquidity is not an abstraction, it is your goal

So far, we have talked about levels where the price can reverse. Now we will delve into the reason why it does so. The market does not move on a whim. It moves towards the accumulation of orders – towards liquidity. For a scalper, understanding this is the key to predicting short-term movements with high accuracy.

The simplest analogy: Imagine that the price is a vacuum cleaner, and limit orders (especially stop-loss orders) are dust. The price is attracted to the places where this "dust" is most concentrated, in order to "suck" it up.

6.2. Types of liquidity: what the market "takes away"

1. Passive liquidity (Liquidity Pools): These are visible clusters of limit orders in the cup. Those very "walls" for buying or selling. They provide the market with the ability to make transactions with minimal slippage.

2. Hidden liquidity (Icebergs): Large orders disguised as many small ones. They are more difficult to see, but their presence can be felt by the stability of the level.

3. Stop Losses (Stop Hunts): This is the main "delicacy" for the market. Stop Losses are market orders that are activated when the price reaches a certain level. They are not visible in the order book until they are activated. However, an experienced trader knows where they are likely to accumulate.

Where do stop-losses accumulate?

· Behind obvious technical levels: Behind the session's lows/highs, behind round numbers (for the Si futures, levels multiple of 500 RUB), behind key Moving Averages, behind the previous day's High/Low.

· Behind levels that have been actively "tested": If the price has bounced off a level several times, many traders place stops slightly lower (for longs) or slightly higher (for shorts), hoping that the level will hold.

6.3. The mechanics of "picking up stops": how it looks in real time

Let's consider the classic situation of a False Breakout, the purpose of which is to take stop losses.

Scenario: A sideways market. The obvious Resistance level is at 100,000 points on the RTS.

1. Phase 1: Preparation (Accumulation).

· A big player (or an algorithm) starts accumulating a position near the level, but inside the range (say, at 99,800). He does it carefully, with limit orders, without pushing the price up.

· At this time, retail traders see the level of 100,000 and put stop-losses for buying (buy stop) just above it (at 100,020), waiting for a breakout and continued growth.

2. Phase 2: Provocation (Breakout).

· A large player removes their limit sell orders at the 100,000 level (or even places a market buy order). The price makes a sharp but small-volume move above the level (to 100,030).

· This activates all the buy stop-loss orders, which turn into market orders.

3. Phase 3: Reversal and Implementation (Fence).

· The big player meets this surge of purchases with their pre-accumulated offers (sells). He sells them at high prices what he bought at lower prices.

· The price, not receiving support, falls sharply back inside the range.

· Result: The big player takes profit. Retail traders who bought on the breakout are at a loss, and their stop-losses for selling will now be lower. The cycle can repeat.

Конец ознакомительного фрагмента.

Текст предоставлен ООО «Литрес».

Прочитайте эту книгу целиком, купив полную легальную версию на Литрес.

Безопасно оплатить книгу можно банковской картой Visa, MasterCard, Maestro, со счета мобильного телефона, с платежного терминала, в салоне МТС или Связной, через PayPal, WebMoney, Яндекс.Деньги, QIWI Кошелек, бонусными картами или другим удобным Вам способом.