One minute forex scalping strategy using trend lines and pin bars.
The 1 minute forex scalping strategy with pin bars and trend lines is, in my opinion, one of the best forex scalping strategies you can use.
We tend to use it in combination with multi time frame forex trading to trade on longer mt4 time frame trading setups and we can tell you that it is a fantastic forex trading system to use simply because its stop loss is set a short distance away, and as soon as you enter buy or sell, the price moves away quickly, which means that your open trade wastes no time in making a profit and if you are wrong, a small loss.
- 1 minute timeframe, but you can also used in the 5 minute timeframe.
- Can be used on any currency pair with low spreads, preferably Major Pairs.
- Timeframe: London and US session.
- Know how to draw trendlines.
- Identify pin bars, otherwise use a forex pin bar indicator.
Sell entry rules
- Identify the swing high on the chart and use two points (numbered 1 and 2 on the chart below) to draw your downtrend line.
- Wait for the price to reach the trend line and when it does, look at the candlestick chart pattern to see if it has a bearish pin bar shape.
- At the close of the bearish pin bar, you can sell immediately on the market order or place a pending sell stop order one pip below the low of the bear pin bar.
- Place your stop loss at least five pips above the bearish pinbar.
- To take profit target Risk: Reward (R:R) of 1:3 or if there is a previous low chart that has Risk: Reward (R:R) of 1:3 or more if price made it then use as your target profit (TP) level.
Buy entry rules
- Identify the chart lows and use two points (numbered 1 and 2 on the chart below) to draw your uptrend line.
- Wait for the price to reach the trend line and when it does, look at the candlestick to see if it is a bullish pin bar.
- At the close of the bullish pin bar on the chart, you can immediately buy the market order or place a pending buy stop order one pip above the high of the bull bar.
- Place your stop loss at least five pips below the low of the pin bar.
- To take profit aim for risk:reward (R:R) of 1:3 or if there is a previous swing on the chart that has risk:reward (R:R) of 1:3 or more if price reaches use that as your profit target level (TP).
Drawbacks of the 1 minute scalping strategy using pin bars and trend lines.
False price spikes can hit your stop loss (SL) and you will then see the price move in the exact direction of your lost trade.
It tends to underperform in the flat or ranging market, so you need to make sure the market is trending well before using this system.
If spreads increase, you will need to increase the distance of your stop loss and not place it too close to the entry price level of your trade to avoid getting an early stop in your trade.