Pinbar Continuation Scalping Forex Trading Strategy For MT4
The Pinbar Continuation Scalping Forex Trading Strategy For MT4 is fabricated with 20 EMA. EMA is better than traditional simple moving average in price action trading model as it responds to the current price fluctuations in a better way.
The lagging issue related to the user moving average is offset with the help of exponential calculation. The pin bar scalping method is a specially designed strategy to reduce the traditional risk of short time frame trading method. As the system focus on the key trend, the chances of losing trades are very low.
To use this system, knowing the anatomy of the pin bar is very important. Pin bar has a small body and a long wick. The wick of the candle is usually three to four times the length of the body. The novice might have confusion about the color of the pin bar but it doesn’t matter. Just take the idea of support and resistance level while using the pin bar and you will know whether it is bullish or bearish.
20 EMA acts as an active dynamic support level to the price. When the price is trading above the 20 EMA, you have been ready to find the long trades. In most cases, the price will test the 20 EMA and form a bullish pin bar stating the bearish is the correction over. Go long in that certain asset and set your SL right below the tail of the pin bar. Take profit will be determined by multiplying the risk amount with the number two so that you are taking the trades with a 1:2 RR ratio.
The short trades are assessed when the price is trading down below the 20 EMA. Look for the rejection at the 20 EMA. After a valid rejection, you can wait for the price to drop below the nose of the bearish pin bar. Short the asset with an SL above the 20 EMA or the tail of the pin bar. Based on the 1:2 RR ratio, you have to determine the take profit. When you are using this system, be cautious about the news factors. The continuation scalping method often fails on trend reversal. And the reversal takes place due to major economic news.
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