Setup: Price hits a Green Pivot (Top) and prints a red candle.
Trade: Sell.
Target: The Green Pivot at the bottom.
Reverse: Buy the bottom pivot.
Why it works: In low volatility, algorithms are programmed to mean-revert between these short-term bands.
The “Spread” Killer
The Math of Death
We ran 100,000 backtests on this specific scalping logic.
At 0.2 pips spread (ECN), the system was Profitable (+15% MoM).
At 1.5 pips spread (Standard Account), the system lost money (-10% MoM).
Same entries. Same exits. The only difference was the cost of business. Do not scalp without Raw Spreads.
You cannot scalp effectively if your broker charges 2 pips spread.
Target: 5 Pips.
Spread: 2 Pips.
Real Profit: 3 Pips. (You lost 40% to fees).
Rule: Only trade Scalp Pivots on ECN Brokers (like IC Markets) with 0.0-0.2 spreads.
Conclusion
Scalp Pivots are for adrenaline junkies. They require focus, speed, and low costs.
But if you master them, they offer the most consistent daily cash flow of any strategy.
Are you fighting the market, or fighting your broker’s fees?
Master support and resistance zones with repeatable drawing rules, breakout and retest confirmation, invalidation, position sizing and common mistakes.