Amazing scalping strategy using pin bar

in the 15 minute time frame

There are many professional traders in the forex industry, making consistent money by
using scalping trading strategy. Scalping can be extremely difficult for the new traders
since it requires extreme execution skills and proper risk management factor. Many
professional traders use the 15-minute time frame along with price
action confirmation signal to scalp different financial instrument time to time. They also
use the 100 and 200 simple moving average which acts as the dynamic support and
resistance level on the 15-minute chart. Basically, professional traders look for pin bar
rejection in the 100-day SMA in the 15-minute time frame.
Let us see how the professional traders use the 100-day SMA and price action
confirmation signal in their amazing scalping strategy.

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Figure: Amazing scalping strategy using price action signal in the 15-minute
time frame
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While using this amazing scalping strategy, the trader must be aware of two things. For
sell setup, the price must be trading well below the 100 and 200-day SMA and for buy
setup, the price should be trading above the simple moving average. The 100-day SMA
will be the potential entry point for the traders along with price action confirmation
signal whereas the 200-day SMA will act as the trend indicator. If the 100 SMA crosses
above the 200-day SMA then we can presume that the market sentiment is bullish and
for bearish sentiment the 100-day SMA must cross below the 200-day SMA.

This study source was downloaded by 100000828477368 from CourseHero.com on 06-24-2021 03:25:15 GMT -05:00

https://www.coursehero.com/file/43807517/Amazing-scalping-strategy-using-pin-bar-in-the-15-minute-time-framedocx/
 In the above figure, the price is trading well below the 100 and 200-day SMA.
Professional traders wait patiently for the price action confirmation signal near the 100-
day SMA.For the above scenario traders got two pin bars right at the 100-day SMA
which triggered their short entry.Professional traders always use the pin to trade the 15-
minute time frame using this strategy. Though there are many reliable candlestick
patterns but the pin bar offers the tightest stop loss in the 15-minute time frame for the
scalper. There are many traders who use the smaller time frame like 1 minute and 10-
minute chart along with candlestick pattern to trade the financial instrument. But
trading such lower time frame only with price action signal creates lots of false signal
for the scalpers. The pin bar scalping system tends to work best in the 15-minute time
frame.
Setting the stop loss in this scalping system is pretty simple. For bearish pin bar,
trader set their stop loss just above the tail of the pin bar formed at the 100-day SMA.
And for bullish pin bar they set their stop loss just below the tail of the pin bar. There are
many traders who use fixed 1:3 risk reward ratio while trading this strategy. But the
advanced professional traders book 50% their profit in the first minor support or
resistance level and set their stop-loss to the breakeven point. Once the stop loss is
set to breakeven point they use the trailing stop loss features and maximize their profit

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even by scalping strategy.

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This study source was downloaded by 100000828477368 from CourseHero.com on 06-24-2021 03:25:15 GMT -05:00

https://www.coursehero.com/file/43807517/Amazing-scalping-strategy-using-pin-bar-in-the-15-minute-time-framedocx/
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