in this video I'm going to show you guys a simple scalping strategy that you can use every day to make consistent profits in the market this strategy presents itself every single day within the first few hours of Market opens it requires no buys super beginner friendly to use and sets up very often so with that being said let's get straight into the video so as I talked about in the previous Slide the strategy is very simple super beginner friendly to use and happens a lot of the time right off the market open so what this strategy is good for is it requires no bias so you don't have to guess where the Market's going to head towards that day right you don't have to guess if the market is going to push towards the upside right push towards the downside I know a lot of you guys have trouble trying to find the buyas for the day but this strategy requires no buyas coming into Market open so it makes it very easy and beginner friendly to use second is time so you don't have to wait a few hours for this setup to form itself happens right off Market open and majority of the time right the trades will form within 9:30 to 11:00 a.m. and third off right it's very easy to use it's so easy that even a beginner can use the strategy to make money cuz it is so mechanical cannot mistake how this trade forms it is not discretionary whatsoever you have a clear strategy and setup that you can execute very mechanically and you have a clear stop and clear profit Target every single time so some of you guys might be asking what is this strategy and this strategy is simply the opening range break and retest you guys might have heard the opening range break before but I trade this a little bit differently how I like to trade the opening range break is by simply waiting for that opening range break to happen and then looking for that retest and that extra confirmation to trade to either way so I personally do not like trading breakouts as you guys know I like trading the break and retest and this is the perfect way how you can incorporate the opening range break into your strategy so what are the simple steps and what does the opening range break look like so as you can see an example number one this is what's called your opening range so the first thing that you're going to do is Mark out your opening Range High and your opening range low this can either be on the 1 minute this can either be on the 5 minute it could be on the 15 minute depending on what time frame you want to choose right me personally I like the 1 minute and 5 minute so I'm going to be marking out the high of the first either 1 minute or or 5-minute candle in this case right this was the high of the 5 minute and low of the 5 minute second what you want to do is wait for strong displacement or a break to either side as you can see in this example at number two right we drew out the high and low of the first 5-minute candle you can see right price was trying to break Above This 5-minute candle but it didn't have strong displacement you can see these upper Wicks forming this is signaling to me that the buyers are not stepping in right sellers are trying to push it down and you can see this next subsequent candle was very bearish right we had the bearish candle closure underneath this level right we had displacement on this break as well and now we can look for the break and retest of the opening range low so you can see here where we end up breaking below closing underneath and now you can see a number three right now what we're going to be looking for is that retest so you can see right here price came back retested its opening candle range low that's where we're going to look to buy with stops above the opening Range High and then what your targets going to be is a 2: one so this strategy is very mechanical you want to Mark out the high and low of the first opening range and then you want to wait for a break with strong displacement and a retest of either the opening range break high or opening range break low with stops above and below either those levels and Target a 2: one so with this being said now we're going to be looking at examples I have and we're going to be back testing a stock for 1 week to see how this strategy performs so before I hop into the charts real quick I just want to draw a simple explanation of exactly what the opening range looks like so let's draw a candle for example right here we have an upper Wick we have a lower Wick right here so this is basically going to be your opening Range High and your opening range low essentially what we're going to be looking for is a break with strong displacement a retest of this area that's where we're going to be looking to buy with their stops below this opening range low candle and your targets being at 2 to one above right so this is what it's going to look like towards the upside and the same thing for the downside what we want to do is Mark out our opening Range High opening range low we want to wait for a break with strong display below our opening range low candle come back up retest this level that's where we're going to look to enter with stops a break above the opening Range High and our targets being that 2:1 towards the downside so this is exactly what the opening range break and retest looks like with a line chart illustration it is very simple very mechanical right you don't want to look for a bias obviously if you have more confluences you can add that into your strategy as well but you want to keep this as simple as possible you do not need a bias to effectively execute this strategy so with this being said let's start back testing for a week as you can see we're on spy here and we're going to be looking at the opening range break on the 5 minute time frame and we're going to be back testing this for one whole week so the first thing that we're going to be doing is waiting for that first minute candle to develop so after that first minute candle develops want to Mark out your opening Range High and your opening range low right so now what we're going to be doing is waiting for a break with strong displacement and looking for a retest of that level for a move to either the upside or the downside so as we fast forwarded here so price finally has displacement we'll see if it comes back and retest and as you can see right this would have been a day where the opening range break and retest there would have been a no trade based off of this setup you can see we had the displacement right here we were looking for that opening range break and retest we never quite got it right price ended up spilling towards the downside so in this case right we're going to be looking for the next day for the opening range break and retest okay so now we're on the next day that we have for the opening range break and retest and we're going to do the exact same thing so the first 5minute candle is form we're going to Mark out the low of the first 5 minute the high of the first 5 minute and we're going to wait for a break of either side with strong displacement so you can see the second 5-minute candle no real strong displacement the third candle we do have a little bit of displacement towards the downside we can see we ended up quickly getting bought back up so right there's no opening range break towards the downside and we keep playing the tape here you can finally see right there right we have that strong displacement we have that continuation towards the upside so you can see right here price is pulling back into our opening range candle that's where we're going to be looking to buy with the stop just to break below the opening range low of the first 5 minutes and of course we're going to be looking to Target at least 2:1 RIS reward ratio so as we play the tape here that would have netted us a very nice 2:1 RIS reward ratio on spy for our first win of the week now we're on our third day what we're going to be doing is marking out our high and our low right so we Mark out our high and we Mark out our low of the opening range on the first 5 minutes and we're going to wait for a break with strong displacement to either the upside or the downside as you can see in this example we have a strong displacement towards the downside you can see this like very clearly right strong displacement now what we're going to be doing is looking for a retest of the opening candle range low with stops above and then you want to Target at least a 2 to1 R reward ratio so let's wait for that retest you can see right there price ended up tapping into our retest level now we're going to be looking for shorts off this opening range of the first 5 minutes with stops just to break above and we're get a luck to Target at least a 2 to1 risk reward ratio so we can Target a 2:1 in this case or we can tar Target low of day as well so we can Target two to one and low of day as we play the tape here you can see price ends up tapping it once more tries getting above but that's why we have a stop at our opening Range High and you can see right there right it took a little bit of a while but you can see the trade ended up working very nicely for a second win of the week as you can see we're on our fourth day of the week right we've had two wins one no trade and we still have had zero losses so far on the week what we're going to be doing is marking out our opening candle highs as usual and our opening range candle low so now we wait for the break right you can see we ended up actually having a very nice displacement right here you see we ended up having displacement right it creates what's called a fair value Gap right strong candle closure Above This level and now we're going to be looking for a retest of this opening range candle right here so right here that's where we're going to be looking to buy with a stop just to break below that opening range five minute and we're going to be looking to Target a 2 to one risk reward ratio as usual you can see right there right price ended up targeting a nice 2:1 risk reward ratio and you also had a key levels above as well so that's really where you want to scale your final position so that would have been a very nice trade as you can see we've back tested the strategy for one whole week we've had zero losses we've had one no trade day and we've had three wins and each win was a 2 to1 risk reward ratio so if you could have executed this strategy properly it would have netted you six are for the week we'll back test a few more days to see if there's a potential other scenarios that set up with the opening range break and retest so you can see this is the very next day right it's Thursday April the 30th we're going to draw our opening Range High opening range low and you can see right here we'll play the tape so you can see price tries closing below this area with no real strong displacement so we have to wait for a strong candle closure underneath or above the opening range 5 minute and then look for that retest so you can see right there that is our first big candle towards the downside where you can see a lot of displacement so now what we can be looking for is that opening range break of the first 5-minute candle and as you can see price ended up tapping into this level very nicely that's where you want to look for a short setup as always you want to have a stop right here and then you want to Target at least a 2:1 R reward ratio so in this case right a 2:1 R reward ratio you're going to be looking for this and you can see right there technically you would have got stopped out right there for a loss but as you can see right the opening range candle there was a nice rejection off this opening range candle it didn't offer you the 2:1 it was very close to a 2:1 but in this case it didn't quite offer you that 2:1 other things to note about the 2:1 if the price is kind of far away in this case you can see that price actually bounced off of pre-market lows so that's actually where you could have taken your profits you can take your profits at key levels and a 2:1 risk reward ratio as well so in this case if you look to scale profits you could have looked to scale at pre-market low and then leave trailers potentially for a 2 to1 risk reward ratio and of course if you take a first profit Target then you can move your stops to break even so depending on how you manage your trade you can easily make this so it's a lot more high probability and you can win a lot more right you don't always have to Target a 2:1 risk reward ratio that's what I do personally but if there's key levels around that 2:1 right you can always scale there as well right it's not perfectly going to be two to one on every single trade some trades are going to be a little bit more than two to one and some trades are going to be a little bit less but overall in the general grand scheme of things right you want to average a 2 to1 risk reward ratio if you have a 50% win rate which the strategy does if you execute it properly you can become very profitable you just have to be patient and wait for the setup to present itself so with that being said I hope you guys did enjoy that video if you did make sure to drop me a like and sub if you guys do test out the strategy make sure to back test said let me know how it goes put that in the comment section below and I'll see you guys next week peace