Short answer
Mark levels where price has turned at least twice on the 5- or 15-minute chart. When price returns to a level and prints a clear rejection candle — a long wick into the level and a close away from it — trade a 5-minute bounce. Skip levels price has already broken through.
Step 1: draw levels on a higher timeframe
Switch to the 15-minute chart and mark horizontal zones where price turned at least twice in the last day or two. Use zones a few pips wide, not single lines.
Good candidates:
- The previous day’s high and low
- Round numbers such as 1.0800 or 2,400
- The start of a strong move
Step 2: wait for price to come back
Return to the 1-minute chart. Do nothing until price reaches one of your zones.
Step 3: look for rejection
A valid rejection candle has:
- A long wick into the zone
- A close away from the zone
- A body smaller than the wick
Open a 5-minute trade in the direction of the bounce on the next candle.
When to skip
- Price has closed through the level twice — it is no longer support or resistance.
- The approach is a fast, large candle — strong momentum often breaks levels.
- News is due.
Combine with session timing
Levels hold more often in calmer hours and break more often at the opening of London or New York. Check your local trading hours and test both separately.
FAQ
How many touches make a strong level?
Two clean turns are the minimum. Levels that also match a round number (e.g. 1.0900) or the previous day's high or low tend to matter more.
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