This Forex Scalping Strategy Using Pin Bar And Support And Resistance is a fairly simple scalping system that uses price action trading.
What You Need
- What you need is to identify your support and resistance levels on your charts
- and know how to identify pin bars. If you can’t then this pin bar indicator may help you do that.
- Timeframe: 5 minute.
- Trading Sessions: better to trade on London or New Your session.
- Best currency pairs to trade: any
Buy (Long) Rules:
- mark your support level and watch that support level as price comes near to it to see if you notice a bullish pin bar forming
- place buy stop order 1-2 pips above the high of that pin bar or open a market order.
- Place your stop loss 2-3 pips below the support line
- Exit and take profit when price reaches twice or three times what you risked initially for that trade.
- Or you can ride the trend until it reaches a key resistance level and exit there.
Here is a chart showing you how to take a buy trade setup:
Short(Sell) Trade Rules
- mark your resistance level and watch that that level as price comes near to it to see if you notice a bearish pin bar forming
- place sell stop order 1-2 pips below the low of that pin bar or open a market order.
- Place your stop loss 2-3 pips above the resistance line
- Exit and take profit when price reaches twice or three times what you risked initially for that trade.
- Or you can ride the trend until it reaches a key support level and exit there.
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