Hello
We will have basically 3 scenarios on higher time frame (M30 charts).
Case 1: A clear uptrend on M30.
This uptrend can be defined by price action of getting higher swings highs and lows or
using one or more MAs or any other method we are comfortable with.
In this case we shift to M5 charts and take only long trades.
Case 2: A clear downtrend on M30.
In this case we shift to M5 charts and take only Short trades.
Case 3: Sideways.
Anything that cannot be defined as case 1 or case 2 falls into this category. It maybe the scenarios of the price going sideways just after a clear uptrend or downtrend. Or a scenario where the price has got into a congestion zone / range compression mode for a while.
Trading the scenarios from case 3 can be tricky and staying out on the sidelines maybe the preferred option. Another option can be trading these scenarios based only on M5 charts. When the trend from HTFs is not behind us then these trades should be treated as just scalping trades. With MCX Crude oil on M5 charts, these scalps can be taken for 8-12 points.
For now I will focus mostly on the trades that are in sync with HTFs trends (case 1 & 2 types).
Thanks