The 20 Pips GBPJPY scalping forex trading strategy is a really simple scalping system.

Time frames: 5minutes

Currency Pair: GBPJPY

Indicators: 25 exponential moving averages

BACKGROUND

For the 20 pips GBPJPY scalping forex strategy, you need to trade only during the london and new york sessions.

When price is above the 25 ema, that is considered an uptrend. When price is below the 25ema, that is considered a downtrend.

Now, the angle of the 25 ema is also important. The flater the angle is, that means the market is ranging. If the angle is about 30 degrees and above,  then there’s a good trend on.

So if you see that the ema angle is flat, you should not trade.

 

TRADING RULES

Buy setup:

1. Angle of moving average is 30 degress and above
2. price must be moving above the 25ema line
3. a bullish pin bar is your buy signal: buy at market price once that bullish pin bar closes.
4. place stop loss at least 10 pips under the low of the pin bar
5. take profit target is 20 pips.

 

Sell Setup:

1. Angle of moving average is 30 degress and above
2. price must be moving below the 25ema line
3. a bearish pin bar is your sell signal: sell at market price once that bearish pin bar closes.
4. place stop loss at least 10 pips above the high of the pin bar.
5. take profit target is 20 pips.

DISADVANTAGES OF THE 20 PIPS GBPJPY FOREX SCALPING STRATEGY

• This scalping system will perform very poorly in ranging, non-trending markets that’s why you need to watch that angle of the ema to make sure you are not trading during a flat market.
• forex scalping is a high pressure/stress trading technique for many, you’ve got to be able to keep a cool head.

ADVANTAGES OF THE 20 PIPS GBPJPY FOREX SCALPING STRATEGY

• the range that GBPJPY moves in a day can be 150-200 pips in a day which allows many opportunities for you to trade it each day and scalp it.

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