The 20 pips gbpjpy forex scalping strategy as the name says is for scalping the GBPJPY currency pair during the London and New York Forex Trading Sessions.

Timeframes: 5 minutes

Indicators: 25 Exponential Moving Average

Buy/Sell Signal: Bullish/Bearish Pin Bar

 

Ok, with this scalping strategy, when you see price moving above the 25 EMA, that tells you it is an uptrend.

If price is moving below the 25 EMA, then the trend is down.

Also, note the angle of the 25 EMA inclined from the horizontal:

• if it at 30 degrees, that indicates also that there is a good trend on.
• if it is flat, then that tells you that a non-ranging market is on where price is consolidating and not really moving anywhere up or down at all. You should avoid trading in such situation as you are going to get too many false signals and have your stop loses hit time and again.

Buy Trading Rules

1. Angle of moving average is 30 degrees and above
2. price must be moving above the 25ema line
3. a bullish pin bar is your buy signal: buy at market price once that bullish pin bar closes.
4. place stop loss at least 10 pips under the low of the pin bar
5. take profit target is 20 pips.

Sell Trading Rules

1. Angle of moving average is 30 degrees and above
2. price must be moving below the 25ema line
3. a bearish pin bar is your sell signal: sell at market price once that bearish pin bar closes.
4. place stop loss at least 10 pips above the high of the pin bar.
5. take profit target is 20 pips.

Advantages of  20 Pips GBPJPY Forex Scalping Strategy

• GBPJPY is a very volatile currency pair and in a day, in can move between 100-200 pips which can give you many opportunities to scalp in a day
• in a very strong trending market, this system can perform very well.
• instead of just relying on the pin bar as the buy or sell signal, you can incorporate other forex reversal candlestick patterns so that you at least hove not only one signal to watch for but a handful.

Disadvantages of  20 Pips GBPJPY Forex Scalping Strategy

• this scalping system will perform very poorly in ranging or non-trending markets.
• avoid trading during Asian trading session as it is a very slow market and price does not move as much. Just trade on London and New York Session.