Break & Bounce Strategy

Learn the Break & Bounce scalping strategy for forex, indices, and stocks using price action on 5-minute and 15-minute charts. Spot reversals after breakouts an

Published · Updated · Methodology: Price Action

Part of: ATR & Volatility

  • Methodology: Price Action
  • Content type: strategy
  • Timeframes: Daily, 15-minute, 5-minute
  • Markets: Indices, Currencies, Stocks, Raw materials, Forex

Indicators used

  • Price Action
  • ATR

Source video

Decoded from: Esta sencilla estrategia de scalping me genera más de 5,000 dólares al mes by Ignacio Ayago | Trading con Bots — watch the original

Key timestamps:

  • 0:00 - Introduction and 3 steps of the strategy
  • 3:30 - Step 1: Define yesterday's range (daily)
  • 5:55 - Step 2: Identify the breakout (15 minutes)
  • 8:22 - Step 3: The perfect entry (5 minutes)
  • 9:01 - Reversal candlesticks
  • 10:09 - Automation
  • 12:50 - Hammer candlestick definition
  • 15:50 - Engulfing pattern example
  • 17:00 - Risk management

Strategy overview

ATR measures how far an instrument typically travels in a given period, and volatility context is what separates a level worth trading from one that price wanders across all day. The Break & Bounce approach applies that context to a specific, dated reference: yesterday's daily range. Its name describes the sequence it looks for — a break of that reference, then a reaction around it — and the video builds it as a three-step top-down cascade, with the daily chart defining the range, the 15-minute chart used to identify the breakout, and the 5-minute chart reserved for timing the entry, including a segment on reversal candlestick reading.

The source is a Spanish-language video from Ignacio Ayago's channel "Trading con Bots", titled "Esta sencilla estrategia de scalping me genera más de 5,000 dólares al mes" — the earnings figure is the creator's own framing, not a verified or reproducible result, and nothing on this page endorses it. What makes the video useful is the rest of its emphasis: it is structured as three discrete steps rather than a list of indicator conditions, and it closes on automation, which is consistent with a channel oriented toward running setups through bots rather than trading them by hand. That orientation tends to force a level-based idea like this one into explicit, testable terms.

This entry has no extracted rule set behind it, so what you will find here is the source reference, its step structure and the timestamps for each part, rather than a decoded parameter list. Anyone wanting the operational specifics — how the previous day's range is measured, what qualifies as a valid break versus a fade, and how ATR is read in real time for context — should go to the video's own walkthrough.

Topics

break and bounce strategy · price action strategy · scalping strategy · forex strategy · indices trading strategy · stocks trading strategy · 15 minute strategy · 5 minute strategy · tradingview strategy · trading strategy · reversal strategy · day trading strategy · atr strategy · technical analysis

Frequently asked questions

What is a Break & Bounce strategy?

It is a price-action approach built around a reference level: price breaks a defined level, then reacts around it, and the trade is taken on that reaction rather than on the break itself. In this version the reference level comes from the previous day's high and low.

Why does this strategy use three timeframes?

Each timeframe does one job. The daily chart supplies the reference range from the prior session, the 15-minute chart is where the breakout is identified, and the 5-minute chart is used only to time the entry. Splitting the decision this way keeps the level definition stable while allowing a finer entry.

What role does ATR play in a setup like this?

ATR is a volatility gauge, not a signal. In level-based intraday strategies it is normally used to judge whether the day's expected range makes a given break meaningful and to scale stops and targets to current conditions rather than to fixed point values. The source video refers to reading it in real time.

Can a previous-day-range strategy be automated?

Level-based setups are among the more automation-friendly ones, because the reference range and the break condition can be stated numerically — and the source video ends on automation. The reaction and candlestick-reading part is where discretion usually creeps in, which is exactly what needs to be defined before any backtest is meaningful.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

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