The Backbone of a Scalper. The daily range is defined as the intraday high minus the intraday low. This formula gives us the amount of ticks or pips an instrument has moved during the session. And this calculation is going to give you the amount of pips or ticks that an instrument has moved throughout the session. And this information or the is also going to tell us which instruments are moving the most and where we should be looking for scalps.

And this simple calculation is going to tell us which instruments are moving the most. And by looking and by knowing which instruments are moving the most throughout the session, we are going to know which ones are the more volatile. By pinpointing them, we are going to add a little extra into our scalping making our system even more profitable.

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So why is the daily range so important? But of course, we are also going to teach you how to do it, when to do it, and for how long you should do it. But for the purpose of this lesson, we are going to teach you right now how to calculate the daily range and how to spot the better instruments to trade or the better instruments to scalp on.

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And as you can see right here, we have the ES 5-minute chart. This is the low of the day and this is the high of the day. And then price broke with this massive chop in this and moved back to the daily lows. When price breaks with this, it can be considered a consolidation period. As you can see here, when price moves the entire daily range to the downside, price starts to trade very choppily.

It goes on to trade in a very tiny range all throughout the day. And as you already know, the YM is the E-mini Dow Futures Contract. We have ticks. That can happen, okay? Meaning that the daily range has gone even larger.

Meaning that this product or this financial instrument is even more volatile than what we expected. But if price goes through this low or this low continues to go lower, it means that the daily range is in fact getting bigger. First of all, you calculate a daily range of all the instruments you are analyzing. You pick the bigger ones, or the ones that are moving the most. And then if the daily range keeps on going bigger, meaning that price continues to trend, you are going to keep on looking for spots to scalp this instrument.

But if price retraces all the way up to, or in this case, all the way up because we are in a downtrend. If we were in an uptrend, it would retrace all the way down.

But if it retraces to the point of entry or to the point of where the day opened, you might want to move onto another instrument. Contact Us Sitemap Affiliate Program Trading in financial instruments carries a high level of risk to your capital with the possibility of losing more than your initial investment.

Trading in financial instruments may not be suitable for all investors, and is only intended for people over Please ensure that you are fully aware of the risks involved and, if necessary, seek independent financial advice. You should also read our learning materials and risk warnings.

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