Capital
$1000+
Duration
5-15m
Timeframes
2 TF
Risk/Reward
1:2
Type
Scalping
Difficulty
medium
About This Strategy
This fast-action scalping strategy uses local trendline rejections and breakouts with dual timeframe confirmation. By identifying where candles open relative to the local trendline, traders can capture quick profits from high-probability reversals and breakouts.
The strategy excels in volatile markets by combining local trendline analysis on a higher timeframe with precise entries on a lower timeframe. This approach provides clear entry signals and defined risk parameters, making it ideal for active traders seeking consistent scalping opportunities.
🎯 Key Principles
Dual TF Foundation
Use two timeframes for analysis and entry timing
Opening Position Focus
Watch where candles OPEN, not just where they touch
Rejection Priority
Trade reversals from local trendline as primary method
Breakout Option
Trade breakouts when candles open beyond trendline
⚙️ How This Strategy Works
🔍 Trading Approach
Local Trendline Analysis
Monitor price reaction to local trendline
- ✓ Acts as major support/resistance
- ✓ Shows rejection and breakout points
- ✓ Enable in indicator settings
Candle Opening Position
Focus on where candles open
- ✓ Opening above = bullish rejection
- ✓ Opening below = bearish rejection
- ✓ More reliable than just touches
Timeframe Synergy
Higher TF analysis, lower TF entry
- ✓ 5min shows the setup
- ✓ 1min provides entry timing
- ✓ Combine for precision
Global Trend Alignment
Confirm with overall trend
- ✓ Improves trading results significantly
- ✓ Trade with larger momentum
- ✓ Road direction provides context
📊 Entry Methods
Rejection Trading (Primary)
- 1 Monitor 5min for trendline rejection
- 2 Confirm candles opening above/below line
- 3 Switch to 1min for entry timing
- 4 Enter on confirmation candle
Breakout Trading (Secondary)
- 1 Identify clear trendline break on 5min
- 2 Confirm candles opening beyond line
- 3 Enter in breakout direction on 1min
- 4 Use trendline as new S/R
🎯 Exit Strategy
First TP: CenterLine
Initial profit target
- • Quick profit capture
- • High probability hit
- • If no reversal, hold position
Second TP: Liquidity Level
Extended target
- • Red line for buys
- • Green line for sells
- • Full position exit
📋 Core Trading Rules
📝 Rule #1: Dual Timeframe Selection
Choose 2 TFs first (example: 1min and 5min for fast action). Enable local trendline in input settings of the indicator
📝 Rule #2: 5min Rejection Analysis
Look at price on 5min to see if it's getting rejected from local trendline. If rejected from going down (all candles OPENING above line), take buy on 1min
📝 Rule #3: Target Management
Close at center or liquidity level (red line for buys). If price doesn't reverse from center on 1min, keep deal open
📝 Rule #4: Trendline as Major S/R
Local trendline acts as major resistance for price. We scalp on reversals from it looking at higher TF and trading on lower
📝 Rule #5: Breakout Trading Option
If candles start opening below the local trendline (breakout), we can also trade the breakout
📝 Rule #6: Global Trend Confirmation
Looking at global trend on 1min or 5min will help improve your trading results
📝 Rule #7: Confluence Example
Perfect scalp when breakout + price resistance on pullback + road curves down + bounce from 5min resistance
🛠️ Setup & Configuration
✓ Required Features
+ Recommended Features
⚙ Timeframe Configurations
Fast Scalping (1min/5min)
Standard Scalping (5min/15min)
Conservative (15min/H1)
✅ Entry Checklist
✅ Pre-Trade Checklist
❌ Avoid These Setups
📚 Complete Trading Guide
📈 Real Trading Examples
Perfect Rejection Trade
EURUSD rejection from trendline
Price approaches local trendline on 5min, all candles opening above
Breakout Scalp
USDJPY trendline break
Clear breakout with resistance on pullback attempt
⚠️ Common Mistakes to Avoid
❌ Focusing on Touches Only
Candle touches are less reliable than openings
✅ Solution: Always check where candles OPEN relative to trendline
❌ Single Timeframe Trading
Missing the setup context and entry precision
✅ Solution: Always use 2 timeframes - higher for setup, lower for entry
❌ Ignoring Global Trend
Trading against the trend reduces trading effectiveness
✅ Solution: Check global trend indicator for alignment
❌ Early Exit
Missing larger moves by closing at first resistance
✅ Solution: If no reversal at center, hold for liquidity level
💡 Advanced Tips
Opening vs Touching
A candle can touch a trendline but open far from it. Focus on opening position for true sentiment.
Multiple Confluence
Best trades have 3+ factors: trendline + road direction + global trend.
Session Timing
London and NY sessions provide best trendline reactions due to volume.
Trendline Flips
After breakout, old support becomes resistance (and vice versa). Use for re-entries.
🚀 Performance Optimization
Entry Precision
- ▸ Wait for clear candle close above/below trendline
- ▸ Use limit orders at trendline for better fills
- ▸ Confirm with volume if available
Risk Management
- ▸ Stop loss just beyond trendline
- ▸ Risk only 0.5-1% per scalp trade
- ▸ Take partial profits at center line
Trade Selection
- ▸ Trade only clear trendlines, not minor ones
- ▸ Skip trades during news events
- ▸ Focus on major pairs for liquidity
❓ Frequently Asked Questions
How do I enable local trendline?
What's the difference between local and global trendline?
Can I use other timeframe combinations?
Why focus on candle openings?
📚 Learning Path
Step 1: Master Local Trendlines
- Enable local trendline in settings
- Practice identifying where candles open vs touch
- Distinguish rejection from breakout patterns
Step 2: Dual Timeframe Practice
- Set up 1min and 5min charts side by side
- Practice spotting setups on 5min
- Time entries on 1min chart
Step 3: Live Scalping
- Start with 0.01 lots to practice execution
- Focus on high-quality setups only
- Track your results and refine
💡 Pro Tips
Author: Pyrem - US30/XAUUSD | Date: 03-May-21 7:43 PM
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