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Scalping Trading Strategy of Trend line Breakout with 45 EMA - Forex Function

Scalping Trading Strategy of Trend line Breakout with 45 EMA

Last Update: 01 January,2017
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This scalping strategy is made of trend line with the help of 45 EMA. Sometimes we find false trend line breakout which occurs loss for the traders. This 45 EMA will filter this loss trade and turned this breakout system more successful. This strategy can be used for both scalping and day trading.

Required Indicator:

1. 45 EMA (Set exponential moving average value as 45)

Buy Setup Rules:

✔Market should be on downtrend
✔Draw downward trend line.
✔First market price needs to break downward trend line.
✔At the same market price also need to cross 45 EMA from in the upside direction.
✔If above conditions fulfill, enter buy position after closing the candle.
✔Breakout should be happened with big bullish candle.

Example of Buy Setup:



simple_trendline-breakout_trading_strategy_with_45_ema_buy_setup

In the above picture in USDJPY M5 time frame, we can see market price broke trend and 45 EMA at the same time with a big bullish candle. So this breakout was successful as per our strategy rules. So strategy gives buy signal after closing the bullish candle

Sell Setup Rules:

✔Market should be on uptrend.
✔Draw upward trend line.
✔First market price needs to break upward trend line.
✔At the same market price also need to cross 45 EMA from in the downside direction.
✔If above conditions fulfill, enter sell position after closing the candle.
✔Breakout should be happened with big bearish candle.

Example of Sell Setup:



simple_trendline-breakout_trading_strategy_with_45_ema_sell_setup

In the above picture of USDJPY M5 time frame, we can see market started falling after breakout of trend line and 45 ema. According to the rules of this strategy, sell signal was found after breakout.

Time frame:

M5, M15, M30. It can be used for higher time frame also.

Take profit and stop loss:

This is scalping strategy and for that take profit will be small. We can set target from 15 pips-50 pips.
Stop loss will be near to swing level as shown on above examples. Normally you can set 15-20 pips SL

Risk warning:

This scalping strategy is used for lower time frame. You need to observe market for several times. If you can make profit from this strategy on demo account, then you can use this on real account.


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