15 Pip Breakout Forex Scalper Strategy

The 15 Pip Breakout Forex Scalper strategy is an excellent strategy to trade short-term trend reversals.

This scalping method consists of a trend line and a few indicators to predict where to buy and to sell in the fast moving currency market.

You should be rest assured of profitability and consistency in the number of wins. Just about anyone with basic computer knowledge will be able to apply this strategy.

Chart Setup

MetaTrader4 Indicators: Trendlines.ex4 (default setting), vr_moving_average.ex4 (Input Variable modified; Period=14), Volume_Weighted_MA.ex4 (Input Variable modified; Period_MA=32)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute

Recommended Trading Sessions: Any

Currency Pairs: Any pair

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Download the 15 Pip Breakout Forex Scalper Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy order if the following chart or indicator pattern take center stage:

  1. If price closes above the trend line after recording its latest lower highs, it signals a possible bearish reversal. Meanwhile, for the sake of the strategy, such highs are recorded i.e. the black horizontal line is drawn to depict this.
  2. Following “condition 1” above, if the deep pink line of the Volume_Weighted_MA.ex4 custom indicator crosses the blue line of the vr_moving_average.ex4 custom indicator bottom up and price opens and closes above the black horizontal line as shown on Fig. 1.0, price is said to be pressured higher hence a trigger to buy the pair of focus.

Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes precedence:

  1. Our target for this trade is 15 pips after confirming a breakout if conditions 1 & 2 are adequately met.
  2. If price falls below the trend line after Conditions 1 & 2 have been met, then an exit or take profit is advised.
  3. If the deep pink line of the Volume_Weighted_MA.ex4 custom indicator crosses the blue line of the vr_moving_average.ex4 custom indicator top downward, it is a trigger to exit or take profit at once.

Sell Entry Rules

Initiate a sell in the market if the following holds true:

  1. If price closes below the trend line after recording its most recent higher lows tested by the trend line, it signals a possible bullish reversal. Meanwhile, for the sake of the strategy, such lows are recorded i.e. the black horizontal line is drawn to depict this.
  2. Following “condition 1” above, if the deep pink line of the Volume_Weighted_MA.ex4 custom indicator crosses the blue line of the vr_moving_average.ex4 custom indicator top downward and price opens and closes below the black horizontal line as shown on Fig. 1.1, price is said to be pressured to the downside, hence a trigger to sell the currency of focus.

Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following holds sway:

  1. Our target for this trade is 15 pips after confirming a breakout if conditions 1 & 2 are fully met.
  2. If price rises above the trend line after Conditions 1 & 2 have been met, then an exit or take profit is advised.
  3. If the deep pink line of the Volume_Weighted_MA.ex4 custom indicator crosses the blue line of the vr_moving_average.ex4 custom indicator bottom up, it is a trigger to exit or take profit at once.

Sell Trade Example

Fig. 1.1

Free Download

Download the 15 Pip Breakout Forex Scalper Strategy

About The Trading Indicators

The vr_moving_average.ex4 is a custom indicator that is basically a modified version of the standard moving average.

The indicator is able to spot patterns and uniqueness in price dynamics which are undetectable to the naked eye.

The Volume_Weighted_MA.ex4 custom indicator shares a lot of similarity to the simple moving average; nevertheless, the Volume Weighted MA places a lot more emphasis on the volume in a given period of time.

The general concept about the Volume_Weighted_MA.ex4 indicator is that price is given more weight during heavy trading action.

A trend line is a negative or positive slope that is formed by connecting two or more high or low points respectively.

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