Before continuing, please read the disclaimer closely.

The "Retracement Scalp" method is based on one of the fundamentals of price movement in the markets:  When the trend changes direction, there is usually a correction from that change before it resumes.  The only questions are (a) how to determine a trend change, and (b) how to calculate the amount of retracement that is safe before entering the trade.  This chart is calibrated to work on the S&P E-mini, though there is no reason why it should not work on other instruments with some  minor changes.  Please refer to the key below which explains the trade methodology.

 

(1) Trend changes from short to long. 

This is shown both by the MACD oscillator in the  lower window, and is also reflected in the change in colors of the Price Bars.  Also, an alert box (yellow box) is drawn above the high of the first bar where this occurs.  At the same time, a pop-up alert informs you that the trend has reversed long, together with a wave sound:  c:\ensign\sounds\up.wav .  If you ad a file to this folder with the name "up.wav" then you will hear the sound alert.  You can also disable it.  The settings for this alert are shown below.
(2) Prices then cross below the Moving Average or retrace to 38.2% of the previous range.

Here, the 38.2% retracement was hit first. Note that the range is drawn from A to B.  In this example, it was initially drawn from  A to B1. 

A Green Arrow appears, as shown, to indicate when prices have crossed below the moving average line while the trend is long.

If prices hit the 31.8% retracement line first, use that to place a Limit Buy order.  Target +1, Stop -1.25.  If scaling out, use +1 for the first contract (C1) and the Fibonacci Wave target of 138.2% for the second contract (C2).

Here, the trade went long at 821.25.
(3) C1 exited at 822.25 for a profit of +1.   At this point, move a stop up to entry price (break-even) and use the Fibonacci Wave target for C2.
 
(4) C2 stopped out even.
 
(5) Trend went briefly short, then back long again, setting up for this retracement long entry as indicated by the green arrow, 821.5.
 
(6) C1 exited at 822.5 for +1, and stop on C2 moved to 821.5
 
(7) C2 exited at the Fibonacci Wave target of 138.2%, 824.5.

Note both the retracement value of 38.2%, and the wave target of 138.2%, are created by the Fibonacci Levels tool which is setup as shown here:
  Trend change alert dialog box: