Forex Scalping Strategy With Trend Line Indicator And Stochastic Oscillator

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

forex-scalping-with-trend-line

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.

forex-scalping-with-stochastic-oscillator

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)

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