Range Reversal Scalping Strategy — Step-by-Step Guide & Transcript

[00:02] scalping strategy is the foundation upon which this account, and this other one, are built. It might be a new approach for you: instead of trading on range breakouts, focus on trading range reversals. Target small, quick moves over short timeframes, allowing me to

[00:19] concentrate on my family and the final months of building my house. I won't hold back any details. Today, I'll show you the complete strategy with examples of real trades and how I've structured and integrated it into my daily trading routine. Nothing presented here is a guarantee or promise of

[00:34] future results, but if you find this content helpful, please like, subscribe, and read the helpful, please like, subscribe, and read the disclaimer. Let's begin.

[00:47] performs in real time. This setup inherently carries a higher level of risk, as the automated trading system executes the strategy in real time. Some people in the community also use this approach, and I'll share their results later. But first, it's crucial

[01:02] to understand the strategy's setup. Let's break it down step by step. Step one: Defining the range. I apply This pattern is used daily at 1:15 AM UTC-1, primarily on the EUR/USD pair. To simplify

[01:18] the process, use the ORB indicator. Go to Indicators, type Range, and then select the Opening Range with Breakouts and Targets indicator. Next, go to Settings. We will use a custom range from 8:00 AM to 9:15 AM UTC-1. In this way, we

[01:33] UTC-1. In this way, we analyze the first 75 minutes of the New York session. The indicator will identify the highest and lowest prices during this period, and this area will be our trading range for the period, and this area will be our trading range for the rest of the session. The

[01:48] rejection shadows. We have the upper and lower limits of the range. Work on the five-minute timeframe, as this strategy relies on this frame. Look for weak breakouts. First, you defined the range from 8:00 AM to 9:15 AM, and now start looking for weak breakouts.

[02:05] This is exactly what happens here. This breakout with a close is very weak, as the next candle immediately returned to within the range. The same thing happens in this example as well. We define the range, and this becomes the trading range for the session. Then what happens? We see a weak breakout, and

[02:23] then... The price quickly returns to within the range, and I follow the same approach when looking for rejection shadows. As you can see, once the range is identified using the Orb indicator, the price rises to the using the Orb indicator, the price rises to the upper limit and then a rejection appears. This is called a rejection shadow candle,

[02:37] indicating that the price did not have enough strength to break through the range. Therefore, a continuation of the downward movement can be expected. The same scenario applies here as well; a clear rejection shadow indicates that the price was unable to break through the range.

[02:52] Therefore, I expect the price to bounce back upwards within the range. This leads us to the third step: the reversal. I enter a trade against the direction of the breakout. I treat the upper limit of the range as a resistance level and the lower limit as a support level. So, when a weak breakout occurs

[03:09] without clear momentum, I start looking for buy opportunities, expecting the price to move upwards to reach buy opportunities, expecting the price to move upwards to reach my take-profit level. The

[03:23] resistance level, where I expect the price to reverse downwards towards the specified take-profit level. Finally, I treat the rejection shadow at the support level in the same way. I use the

[03:35] opening range to determine whether the price will reverse or continue. This is my trading strategy based on range reversals. Before delving into more advanced details or deeper statistics regarding the

[03:50] scalping strategy, I'd like to show you how it's applied practically. Let's look at some real trades. practically. Let's look at some real trades. As you can see here, this is a real trade I executed. We had the upper and lower limits of the range. The price started approaching the

[04:04] lower limits of the range. The price started approaching the lower limit, and I was looking for a rejection shadow. At that precise point, I entered the trade, and it was a quick trade. The trade might seem relatively small due to the wide range, but this aligns with the average target level I relied on. As you can see, the

[04:18] target level I relied on. As you can see, the average is around 8.57 points, while this trade achieved approximately 6.9 to 9 points. The same applies to this direct trade. Here, we identified the range, and you can see that the price showed rejection. I entered the trade when

[04:32] the price showed rejection. I entered the trade when this shadow appeared, and then the price started moving downwards. This is another trade that took only two candles, approximately seven minutes to complete.

[04:45] In this trade, I managed to achieve 16.7 to 7 points, which is higher than the average. Here's another trade where we identified the range, and you can see that this range is smaller. The price moved

[04:57] downwards. Then, rejection began to appear. Upon this rejection, I entered the trade, and the price moved upwards rejection, I entered the trade, and the price moved upwards in about two candles. It was a quick trade, achieving approximately 5.1 points, which is

[05:12] normal. I don't aim for large price movements with this strategy; rather, I focus on achieving small, recurring targets. Here's another example with the same idea: rejection appeared, followed by a quick exit from the trade. It took about two candles and achieved around 7.5 to 5 points, as the

[05:28] achieved around 7.5 to 5 points, as the price respected the upper limit of the range as a resistance level. But what happens when the lower limit of the range isn't respected? This is certainly possible, so this strategy isn't ideal. As you can see, the price moved downwards and broke through

[05:44] As you can see, the price moved downwards and broke through the range, then showed rejection. I entered the trade, and the price started moving upwards. Initially, the performance was good. I was targeting about 12 points in this trade, but then the price started moving against my direction.

[05:57] You can notice that the next candle was also bullish, but then the price started moving against me. Consequently, it didn't reach the profit-taking level and began to decline. What should I do in this situation at this level? When the price fell back down, I added a

[06:12] new trade in the same direction, but with a contract size double the size of the original trade. Then I adjusted the take-profit level for both trades to this level here. Let's see how the trade developed at that point. The price reached the take-profit level, and both the

[06:28] reached the take-profit level, and both the first and second trades closed at a profit. This is what I call hybrid execution. If you haven't seen this technique before, it's worth familiarizing yourself with, as this is where the more advanced aspect begins. It involves a deliberate approach to gradually adding

[06:43] deliberate approach to gradually adding positions. As you can see here, I entered the trade when the rejection shadow appeared at the lower boundary of the range, but the price moved against me. So, I added another trade with a contract size double the size of the

[06:57] first. When the price continued to move against me, I added a third trade with a larger size again at this level. After that, the price bounced back to this level, where I closed all the trades with a similar profit because I'm targeting gradual and deliberate growth. However, it's important to be aware that adding positions

[07:12] in this way can be risky, so always use very small contract sizes. As you can see here, the shadow appears. When the price rejected the move, I entered the trade. Then the price moved against the trend. At this level, I added another entry to my

[07:26] At this level, I added another entry to my trade network. After that, I managed to profit. The first entry failed because the price moved against the trend, so I added another trade here and then exited the trade at this level using the same mechanism I showed you on the MetaTrader platform. Here's

[07:42] another example; let me explain in detail. Here we have a support level that I'm trying to capitalize on. I was looking for an entry point when the rejection shadow appeared, and I got the shadow, but the price rejection shadow appeared, and I got the shadow, but the price moved against me. So, I added a new trade.

[07:57] Let's say the first trade was 0.1 and the second was 0.2 to 2. The second was 0.2 to 2. The original take-profit level was here, but when I opened the second trade, I moved the take- profit level to this level to ensure I

[08:11] profit level to this level to ensure I achieved approximately the same profit. Therefore, the profit from this trade will be almost identical to what I would have made from the almost identical to what I would have made from the original trade if it had closed at this level.

[08:23] Here you can see the calculations I made. With each additional trade, I widen the distance between each additional trade, I widen the distance between the prices at which I enter and increase Also, the contract size increases as the trade progresses, and this is where the trading robot comes in. The calculations start to

[08:37] trading robot comes in. The calculations start to increase and become more complex, but it simplifies the process considerably. This is exactly how I'm applying this strategy today. If you have any questions, leave a comment and I'll answer them. You can join our Discord server; we discuss

[08:50] this strategy there daily. Like the video and subscribe to the channel, and consider trying my trading robot, which applies this strategy exactly, or just watch this video here. Don't forget to watch this video too. I'll be back next week. All

[09:06] this video too. I'll be back next week. All my love.