Trendline Scalping Strategy For MT4

Trendline Scalping Strategy For MT4

Table Of Contents:

  1. Trendline Scalping Strategy For MT4
  2. Trendline scalping forex trading system – Long positions
  3. Trendline scalping forex trading system – Short positions
  4. Is the trendline scalping strategy good for trading?


Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.


The Trendline Scalping Strategy For MT4 is something that day traders will love. For one, this trading system works on the basis of a trend line, that is plotted as interconnected dots. It clearly displays the uptrend and downtrend in the price.

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Long with this, the use of intraday pivot points brings additional benefit. It allows you to position your trade and set up your entry and take profit levels on the chart. With good enough practice, the trendline scalping system can offer you great rewards and consistency.

Of course, traders should spend enough time with this trading system in order to get familiar on how to use the trendline scalping system. We recommend using the trendline scalping system on major currency pairs and on commodities such as gold and crude oil. This is because in the commodity markets, the tends are quite sharp and when the trend breaks, the moves are also equally rapid. In the forex markets, the trends aren’t that consistent and at times price is prone to volatility which can cause fake moves in the markets and can prematurely stop out your positions.

There are not many indicators in play here, which makes it easier to trade. The price chart also shows the clear trend in the markets allowing you an additional advantage when trading with the trendline scalping forex system. Lets now take a look at how to trade long and short positions using the trendline forex scalping system.

Trendline scalping forex trading system – Long positions




The first step when looking for a long position is of course in identifying a currency pair or an instrument that is previously in a downtrend. We also prefer to see some sideways ranging markets as well. This is because trends do not change immediately from down to up or vice versa.

Therefore, a downtrend, followed by some choppy price action is ideally the way to go. Once you identify such a market, the next step is to wait for the trend to broken. In the above chart, we have an example where price was in a downtrend. Following this, we have a bit of a sideways market that is emerging.

When the red dots are breached, that is the time to go long. You can set your stop loss to the lower dots as shown on the charts. But sometimes this is not ideal as the stop loss can get quite far away from your entry point and could potentially expose you to losses. Therefore, we recommend identifying the nearest low point and set your stops a few pips below this low.

Once the long trade is in play, there are different ways to set your take profit. You could for example, use the day’s pivot points as take profit levels. Alternately, just use a fixed risk to reward set up and you should be good to go.

Trendline scalping forex trading system – Short positions




For short positions using the trendline scalping strategy, we need to look for an uptrend first. This is because, we expect, or want this uptrend to be broken. For this reason, look to the left side of your chart. As you can see from the above example, we have a strong uptrend in place. This is also identified by the blue dots that have formed, signaling a strong uptrend.
After this takes place, wait for highest low to be breached. This will automatically create the red dots on top of the price, suggesting that the downtrend is in play. Note that in the above sell signal set up example, we have a slightly different version.

Here, we have a strong uptrend and we are trading this breakout. This is slightly different from what we explained in the long position set up. This is because when trends get extreme, they break rather quickly. Therefore, this is another way to identify potential opportunities in the market.
Going back to the sell signal example, once the downtrend is in play, set your entry point on the open of the next candlestick. Look to the emerging pivot points for the day and set your take profit levels at one of these points. Note that you can also remain the trade if the trend continues to be especially strong.

Therefore, another way to set the take profit level is to simply move your stop loss to the red dots that emerge on top of price. Eventually, you will get stopped out, but the advantage being that using this method, you are able to ride the full strength of the trend.

For the initial stop loss, you need to set it at the red dot that appears on top of your price. You can also look at the recent highest high that formed and then set up your stop loss at this level to reduce the level of exposure in the market for the short trade setup.

Is the trendline scalping strategy good for trading?


The trendline scalping method does as it is named. It is a way to scalp the markets using trendlines, which are depicted rather differently. This trading system is easy to use and even beginners will find it simple to trade with. If you are a fan of trend lines and scalping, then the trendline scalping system is best suited for you.

Note that as the name suggests, this trading system works best on short term chart time frames. Therefore, you can use this from 5-minute to up to one hour chart time frames. There is scope to extend this trading system to longer term charts as well, but it is left to the trader’s discretion.
The whole trading system is also quite simple as it uses just a few indicators. Therefore, performance wise, it does not impact your MT4 trading terminal a lot. You can use template on multiple chart windows and still see your MT4 not slowing down.

Once you get comfortable trading with the trendline scalping system, you can extend this into modifying and adding your own set of indicators as well.

Download the complete system description and the files here:

FREE Trendline Scalping Strategy

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I'm Mike Semlitsch the owner of PerfectTrendSystem.com. My trading career started in 2007. Since 2013 I have helped thousands of traders to take their trading to the next level. Many of them are now constantly profitable traders. 

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