The "Doji Flip" Strategy

A systematic scalping approach for MNQ futures using Heikin Ashi candles and momentum filters

Instrument MNQ
Timeframe 30s Chart
Session First Hour
Risk/Reward 10:25 pts
01

Strategy Overview

The Doji Flip strategy is designed specifically for scalping the Micro E-mini Nasdaq-100 futures contract during the high-volatility opening hour of the market session. This strategy combines trend-following principles with momentum confirmation to capture quick, high-probability moves.

Instrument MNQ Only
Time Window First 1 Hour
Chart Type Heikin Ashi
Trend Filter 100 EMA
Momentum Stochastic RSI
02

The Setup

Before looking for any trade, ensure your chart is configured correctly with the following indicators:

Required Indicators

  • Candles: Heikin Ashi (HA)
  • Primary Indicator: 100 Period EMA (Exponential Moving Average)
  • Secondary Indicator: Stochastic RSI

Trend Identification

Bullish Bias

Price is trading ABOVE the 100 EMA. Look for BUY signals only.

Bearish Bias

Price is trading BELOW the 100 EMA. Look for SELL signals only.

⚠️ No Trade Zone

If price is consolidating on top of or very close to the 100 EMA, stand aside. Do not force trades in choppy conditions.

03

Entry Rules

The "Doji Flip" Signal

Once the trend is established (e.g., Price > 100 EMA for buys), wait for the following sequence:

The Trigger

A Doji candle appears on the Heikin Ashi chart, indicating indecision or a potential reversal point within the trend.

The Confirmation

The Doji is followed immediately by 2 clean candles in the favored direction with decent relative volume. These candles should show conviction, not hesitation.

The Filter (Stochastic RSI)

  • For BUY: Stoch RSI must be above 80 OR coming up from below 20 (oversold bounce)
  • For SELL: Stoch RSI must be below 20 OR coming down from above 80 (overbought rejection)

Final Validation — The "Switch"

If all conditions above are met:

  1. Briefly switch to Normal Candlesticks
  2. Watch price action for 15–30 seconds
  3. EXECUTE if momentum and volume persist in your direction
  4. ABORT if the movement stalls or volume dries up
04

Invalid Setups — The "Danger Zones"

Discipline means knowing when NOT to trade. Do NOT take the trade if you see any of the following:

❌ The "Weak Pullback"

Price is above 100 EMA, but Stoch RSI pulls back below 50 and shows green candles. Wait for Stoch RSI to be above 50 before entering.

❌ The "Range Trap"

Stoch RSI is ranging between 20 and 80 (e.g., oscillating in the middle). Even if you see 2 clean candles, ignore them. This indicates choppy, non-trending conditions.

❌ The "Middle Ground"

In an uptrend, if Stoch RSI is stuck between 20 and 50, stay away. The momentum is not strong enough to justify a scalp entry.

05

Risk Management & Exits

Risk management is what separates profitable traders from gamblers. Follow these rules without exception:

Stop Loss 10 Points (Hard)
Take Profit 25 Points
Risk/Reward 1:2.5 Ratio

Exit Management Rules

  • Breakeven Rule: Once price moves +10 points in your favor, immediately move your Stop Loss to breakeven (entry price)
  • No Partial Exits: Take full profit at 25 points — don't get greedy
  • No Emotional Exits: Let the trade work or hit your stops — trust the system

📊 Performance Review

Do not check P&L daily. Review your results only at the end of each month. Daily fluctuations will mess with your psychology. Focus on executing the strategy correctly, not on individual trade outcomes.

Strategy Summary

The Doji Flip strategy works because it combines multiple confirmation layers:

  1. Trend alignment with the 100 EMA
  2. Pattern recognition with Heikin Ashi Doji candles
  3. Momentum confirmation with Stochastic RSI
  4. Volume validation by switching to normal candles
  5. Strict risk management with predefined stops and targets

This strategy is not about predicting the future — it's about exploiting high-probability setups when all conditions align. Trade it mechanically, review monthly, and let the edge work over time.