Set price action for scalper

The price action setting we are talking about here is the pin bar candle in a pullback trade. For this trading strategy, we use 2 more technical indicators, EMA 20, and EMA 50.

The EMA is in a trendsetting for us in a pullback trade. If the 20 EMA is above the 50 EMA, showing an uptrend, we prioritize buying. If the 20 EMA is below the 50 EMA, showing a downtrend, we prioritize selling.

Now we get to the most important part.

Trading principles

For buy orders
  • Wait for the price to be above both EMAs where the 20 EMA is above the 50 EMA.
  • The market has overcome the previous high to form a higher high.
  • Wait for the price to return to one of the two EMAs.
  • Look for a bullish pin bar candle that forms one of the two EMAs.
  • Wait for the next candle to close above the highest price of the bullish pin bar candle.
  • When there is a close above the high of the bullish pin bar candle, place a buy order above the bullish pin bar candle close price.
  • Place your stop loss 5 pips from the lowest price of the bullish pin bar candle (about 10 pips).
  • Set Take Profit at 1R or 1.5R.
Take a look at the AUDUSD M30 bracket example:


When the price formed a higher high than the previous one, the 20 EMA also crossed above the 50 EMA. We should now watch buy.

The price retraced back to the 20 EMA and formed a bullish pin bar candle there. This is a strong buy signal formed at the EMA. However, we need to wait for another close candle above the previous bullish pin bar candle to open a long position.

The picture above shows that the next candle broke the highest price of the bullish pin bar candle but finally closed a bearish pin bar candle. Many traders worry this is a counter-trend signal. So what should we do?

We should still execute the trade in accordance with our rules, placing the order according to the trade setup. As shown below:
The figure below is the follow-up chart, which shows the order took profit quickly.


Trading principles for sell orders:
  • Wait for the price to be below both the EMA and the 20 EMA below the 50 EMA.
  • The market formed a lower bottom.
  • Wait for the price to return to one of the two EMAs.
  • Look for a bearish pin bar candle that formed at one of the two EMAs.
  • Wait for the next candle to close below the bearish pin bar candle.
  • When there is a closing candle below the bearish pin bar candle, place a sell order below the close of the bearish pin bar candle.
  • Place your Stop Loss 5 pips from the highest price of the pin bar candle (about 10 pips).
  • Set Take Profit at 1R or 1.5R.
See the example on the EURUSD M15 chart:


The bearish pin bar candlestick appears at the EMA when the 20 EMA cuts down to the 50 EMA, at the same time the price also creates a lower low.

The next bearish candle closes below the bearish pin bar candle, at which point we place a sell order. Stop loss and take profit as shown.


As you can see the market quickly took profits at 1.5R.


In conclusion, the strategy has simple principles, easy to use, has many confirmations, more than half of the RR ratio is also beneficial for scalper traders.

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