Range Bound Scalping Setup and Rules

**DEVIATION REVERSAL (DR Trades)** The Apex Deviation Levels mark pre-plotted daily deviation levels. The Deviation Reversal Indicator ( DR) spots intraday deviation moves based on current market conditions. This strategy is very effective for ranging days. A zone is marked with two yellow lines at 1.17 and 1.5 intraday deviation level. Once the DR reaches into this zone, this strategy looks for reversal trades. When DR crosses into the zone, not just barely touching, but actually crossing into the zone, (see the first screenshot below), watch the price action on the chart for a reversal bar with a cluster confirmation. The cluster can be on either that reversal bar or on the bar before the reversal bar. This setup must take place within 6 bars from when the DR first crossed into the zone. When DR crosses into the zone, this is considered bar 1, so it is that bar plus 5 bars. (See the second screenshot below.) Entry is 3 ticks after the close of the reversal bar with the cluster confirmation. When DR gets in the zone, whether or not there is a valid setup, the next setup we look for is the opposite color. For example, if green comes into the zone twice in a row, the second time, it is ignored it because only red is valid after a green. Two green in a row cannot be taken. Any setups after green DR are invalid until after red comes into zone and vice versa. The red / green colored DR bars do NOT show you the direction of the potential trade entry. It is showing you the direction the market has moved so far. The trade direction will be the opposite of DR color. For example, a green DR in the zone indicates a red / short trade setup.

_Do not take trades going “into” major levels without having at least room for a 10-tick scalp between the entry and the level. If the market has already gone “into” that level and bounced off and this is the second attempt into the level, the entry can be taken unless it is at settlement. Always be careful trading around settlement. Trades bouncing “off” a level are okay, just be aware of going “into” levels._