Scalpers don't want to use candlestick pattern during trading which is the biggest mistake for them. Most of the indicators has lagging in real time trading. But candlestick pattern is one of the finest indicator to trade with the live market price which has great success rate. So this strategy is design with candlestick and 45 EMA which gives signal in the trend direction with candle confirmation. So it can ensure more profit for scalpers.
1. 45 EMA (put period 45) Click here for EMA setup process
You need to know about Various Different Types of Candlesticks
. Read below articles about candlestick.
Click here to know about Hammer and Hanging Man, Inverted Hammer and Shooting Star
Click here to know about Dark Cloud Cover, Piercing Pattern, Bullish Engulfing Pattern, Bearish Engulfing Pattern
Buy Setup Rules
✮ First set 45 EMA on the chart & wait for price to cross 45 EMA from below to above.
✮ Price needs to make little retrace on downside and touch the 45 EMA.
✮ Now wait for any bullish candle like bullish engulfing, pin bar or any types of reversal candle.
✮ After forming any bullish reversal candle, then open buy position.
✮ Take profit is 20-30 pips for buy setup.
✮ Stop loss is 15-20 pips for every buy entry.
Sell Setup Rules
✮ First set 45 EMA on the chart & wait for price to cross 45 EMA from above to below.
✮ Price needs to make little retrace on upside and touch the 45 EMA.
✮ Now wait for any bearish candle like bearish engulfing, pin bar or any types of reversal candle.
✮ After forming any bearish reversal candle, then open Sell position.
✮ Take profit is 20-30 pips for sell setup.
✮ Stop loss is 15-20 pips for every sell entry.
Buy/Sell Setup Examples
In the above GBPJPY M15 chart, we can see that market price broke trend line & took little retrace and pulled back every time forming reversal candle.
Any trend pairs.
This strategy is suitable for trend pair like gbpjpy and other cross pairs. Before using this strategy on live account, you should test this on demo with proper money management rules. You need to have deep knowledge about candle pattern. So if you can get success on demo, then you can use this strategy on real account.
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