Profitable forex scalping with trend lines and the Stochastic oscillator. Can it be done? Yes!
Chart Setup
Indicators: Trendline, Stochastic Oscillator
Preferred time frame(s): M1
Trading sessions: Euro, US
Preferred Currency pairs: Medium to high volatile pairs
Download
Download the Forex Scalping Strategy With Trend Line Indicator And Stochastic Oscillator.
Example: GBP/JPY 1 Min Chart
Figure 1 & 2: Here is a 1 min chart of GBP/JPY with the indicators and strategy applied. Fiqure 1 shows a scalping trade in an up trend. Figure 2 shows a scalping trade during a down trend.
Trading Rules
Buy Rules:
- Wait for the price to pull back towards the rising trend line but doesn’t close below.
- Wait for the Stochastic indicator to turn back above 20 from below (oversold)
This is your buy entry signal.. Place stop-loss order 1 pip below the most recent swing low.
Price objective: 10-25 pips (dependent of the volatility)
Sell Rules:
- Wait for the price to pull back towards the falling trend line but doesn’t close above.
- Wait for the Stochastic indicator to turn back below 80 from above (overbought)
This is your sell entry signal.. Place stop-loss order 1 pip above the most recent swing high price.
Price objective: 10-25 pips (dependent of the volatility)