Trust Broker Group
ForexFunction Logo

"Forex trading involves a high level of risk"

 Forex Trading VPS
 Market Comments |  Technical Indicator Signals |  Cross Pair Rates |  Live Spread |  Live Charts |  Daily Pivot Points
Scalping Strategy of Stochastic with Candlestick Pattern - Forex Function

Scalping Strategy of Stochastic with Candlestick Pattern

Last Update: 01 February,2017
Print PDF

Scalping system is best for beginners in Forex. In this trading strategy, traders can find some signals from lower time frame with 10-30 pips target. This strategy is build up with stochastic indicator with price action candle confirmation. Only stochastic oscillator can give false entry setup but candlestick pattern gives the signal confirmation. Let's learn about this scalping trading strategy.

Required Indicators


1. Stochastic Indicator. Click here for Stochastic Indicator setup process

You should learn about Various Different Types of Candlesticks . Read some important articles about candlestick.

Click here to learn about Hammer and Hanging Man, Inverted Hammer and Shooting Star

Click here to learn about Dark Cloud Cover, Piercing Pattern, Bullish Engulfing Pattern, Bearish Engulfing Pattern

Buy Setup Rules


❑ Stochastic needs to start upward movement from oversold area.

❑ If stochastic moves above 20 level, then wait for bullish candlestick confirmation.

❑ You need to wait for bullish candle like bullish engulfing, Bullish Marubozu, Pin bar or any bullish reversal candle.

❑ After bullish candle confirmation, place buy position.

❑ Set take profit as 10-30 pips.

❑ Set stop loss 3 pips below the bullish candle.


Sell Setup Rules


❑ Stochastic needs to start downward movement from overbought area.

❑ If stochastic moves below 80 level, then wait for bearish candlestick confirmation.

❑ You need to wait for bearish candle like bearish engulfing, Bearish Marubozu, Pin bar or any bearish reversal candle.

❑ After bearish candle confirmation, place sell position.

❑ Set take profit as 10-30 pips.

❑ Set stop loss 3 pips below the bullish candle.

Buy/Sell Setup Examples



scalping-strategy-of-stochastic-with-candeslistick



In the above USDJPY M15 chart, stochastic moves from oversold area and at the same time, pin bar formed which indicates buy signal in this strategy. Since then market started moving in upward direction. On sell example, bearish engulfing was formed and stochastic also started downfall.


Time Frames: M15, M30.

Currency Pairs: Any pairs.

Risk Warning: This scalping strategy shouldn't be used on news time. Before using this strategy, you must know about candlestick pattern. Without proper knowledge of candle, you can't gain from this strategy. So learn candlestick pattern and apply this scalping trading system on your demo account before using on real account.


Submit Your Comments:

 Forex Trading VPS


FOREX FUNCTION MEMBERSHIP

FX PREMIUM SIGNAL & AUTOCOPY
Email & Twitter SMS Alert | Secured & Errorless Auto Copy | Support All Broker & Account Types | Premium eBooks, Analysis & Strategy | Custom Risk Management

Plan NameBuy LinkEmail AlertTwitter
SMS Alert
Signal Auto
Copier EA
Free VPS
(1-3 Months)
Monthly Target
(Minimum)
Price
(Montly)
Price
(Quarterly)
Price
(Semi-Annually )
Price
(Annually)
Setup
AUTO COPY Subscribe NowYes Yes Yes Yes 500+ Pips $25 23$ 20$$15Via Live Support
SIGNAL ALERT Subscribe NowYes Yes No No 500+ Pips $14 12$ 9$$7No Need
CashBack View DetailsYes Yes Yes Yes 500+ PipsFree Free FreeFreeVia Support

FF FOREX VPS
Windows 2008/2012 | Server Location Amsterdam, France, Canada | Low Latency From Brokers| Super Fast Trading Experience | All types of EA supported | 3 Days Money Back Guarantee

Plan NameBuy Link CPU RAM Disk BandWidth Price (Montly)Price (Quarterly)Price (Semi-Annually )Price (Annually) InstallationBackUpSetup Fee
Economy buy now2 Core 756MB 15GB 1TB $6.50/M$6.20/M$5.90/M $5.50/M MT4 Pre-InstalledYesFree
Standard buy now 2 Core 1GB 25GB 1.5TB $8.50/M$8.20/M$7.90/M $7.50/M MT4 Pre-InstalledYesFree
Premiumbuy now 2 Core 2GB 40GB 2TB $16/M$15.50/M$15/M$14.50/M MT4 Pre-InstalledYesFree
Advanced buy now4 Core 3GB 60GB 2.5TB $26/M$25/M$24/M $22/M MT4 Pre-InstalledYesFree
Professionalbuy now 4 Core 4GB 80GB 3TB $33/M $32/M$31/M$29/MMT4 Pre-InstalledYesFree
Business buy now 4 Core 6GB 100GB 4TB$46/M $45/M$44/M$42/MMT4 Pre-InstalledYesFree
Platinum buy now 4 Core 8GB 120GB 6TB $59/M $58/M$57/M$55/M MT4 Pre-InstalledYesFree
Diamond buy now 4 Core 12GB 180GB 8TB $89/M $87/M$85/M$81/MMT4 Pre-InstalledYesFree

***We accept Neteller, Skrill, MasterCard, Paypal, Payza, Perfect Money, Webmoney !