I think you have the right idea here. This is similar to the Break & Retest strategy that I posted, but with a couple of differences that I’ll mention.
First of all let’s clear up Risk:Reward ratio as this is a common mistake in these forums.
Your Risk is 1 because you are risking $1
Your Reward is 2 because you would be rewarded with $2
Therefore your Risk:Reward ratio is 1:2
You don’t have to have a strict 1:2 Risk:Reward ratio. If you back-tested this you would probably find your winning percentage much higher using 1:1.5 or even 1:1. But I wouldn’t know, I don’t back-test, which is probably a fault of mine. If this strategy does have a 1:2 R:R when live trading, then you’re laughing.
Also, you could reference a higher time-frame for the longer term trend direction so that if you are trading against the trend you might consider reducing your position size or R:R to reduce your risk.
Keep up the good work though and don’t over complicate it. You are on the right track.