First 5-Minute Candle Breakout Retest Strategy

Day trade the first 90 minutes of market open using this price action breakout and retest strategy. Identify entries from the initial 5-minute candle range.

Published · Updated · Methodology: Price Action

Part of: Breakout Trading

  • Methodology: Price Action
  • Content type: strategy
  • Timeframes: 5-minute (for range identification), 1-minute (for execution)
  • Markets: Futures, Options, Stocks, Forex, Crypto

Source video

Decoded from: If I Started Over, This Is How I'd Make $500/Day Trading (Full Tutorial) by Scarface Trades — watch the original

Key timestamps:

  • 0:59 - Simple Strategy To Start Trading
  • 3:04 - Building A Profitable Trading System (Full Strategy)
  • 7:49 - Bullish Trade Example
  • 9:54 - How To Increase Winrate Using This Setup
  • 4:55 - Step 1: Understand the context of the day (news catalysts)
  • 6:20 - Step 2: Mark the first 5-minute candle high/low
  • 7:00 - Entry on retest after breakout
  • 8:30 - Execution on 1-minute timeframe
  • 9:10 - Stop loss placement
  • 9:20 - Take profit (2R multiple)

Strategy overview

A first-candle breakout waits for the session's opening 5-minute bar to finish, marks its high and low, and treats a move beyond either edge as the day's first directional commitment. What separates this version is the word *retest*: the break alone is not the trade — price has to come back to the level it just cleared before execution is considered, which turns a single event into a two-part sequence and shifts the entry from the moment of maximum noise to the moment of confirmation. The two timeframes divide the labor accordingly: the 5-minute chart exists only to draw the level, and the 1-minute chart exists only to time the return to it.

The source is Scarface Trades' "If I Started Over, This Is How I'd Make $500/Day Trading (Full Tutorial)", and the framing is a beginner curriculum rather than a strategy reveal — a rebuild-from-zero walkthrough with numbered steps. The ordering of those steps is the notable part. Step 1 is not the level; it is understanding the context of the day through news catalysts. Step 2 is marking the first 5-minute candle's high and low. In other words, a discretionary gate sits *in front of* the mechanical part: the video asks the trader to decide whether the day is worth trading before any line goes on the chart, which is why two sessions with identical opening candles are not treated identically here.

The walkthrough then moves through a single bullish trade example before arriving at a separate chapter on increasing win rate with the setup — presented as a layer stacked on top of the base rules rather than folded into them, so the core sequence and the optional filter stay distinguishable. No indicators are involved at any stage; the entire method runs on the opening range and price's behavior around it. This entry catalogs the strategy's concept, structure and source; the operational specifics — where risk sits relative to the candle, what invalidates a retest, and how the trade is closed — remain in the video itself, and the dollar-per-day figure in the title is the channel's own framing, not a documented result.

Topics

first 5 minute candle strategy · breakout retest strategy · day trading strategy · price action strategy · 5 minute strategy · scalping strategy · forex trading strategy · futures trading strategy · stock breakout strategy · early market trading · tradingview strategy · pine script · market open strategy · intraday trading

Frequently asked questions

What is a first 5-minute candle breakout retest strategy?

It marks the high and low of the session's opening 5-minute candle, waits for price to break beyond one of those edges, and then waits for price to return and test that same level before an entry is considered. The retest requirement is what distinguishes it from a plain opening-candle breakout, which enters on the break itself.

Why does this setup use both a 5-minute and a 1-minute chart?

The two timeframes have separate jobs. The 5-minute chart is used once, to define the opening candle's high and low; the 1-minute chart is used for execution, giving finer resolution on how price behaves when it comes back to the level. The reference level never changes with the execution timeframe.

Why does the video start with news catalysts instead of the chart?

Because in this version the day's context is a filter that runs before the setup. The tutorial's first step is understanding what is driving the session, and only its second step is marking the opening candle — so a qualifying candle on a day without context is treated differently from the same candle on a day with one.

Is the $500 a day in the title a realistic expectation from this strategy?

That figure comes from the source video's own title and is the channel's framing, not a verified or measured outcome. Strategy Decoder catalogs strategies as they are presented in their source videos without endorsing income claims; any expectation should come from your own backtesting and forward testing, not from a title.

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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