Forex Range Day Trading Strategy: 20-25 Pips A Day Using 30-Minute Chart

Updated: Jul 13

This forex range day trading strategy uses the 30-minute forex trading chart for spotting good trading opportunities and the 5-minute chart for executing the trade.

It is best used for trending forex pairs.


Avoid using this strategy in pairs with high spreads.


It is also ideal to avoid trading forex pairs with erratic price action as displayed by long candlestick wicks.



Time Frame


  • 30-minute chart. Look at your favorite forex pairs' 30-minute chart. Analyze the pairs with good horizontal support and resistance.

  • 5-minute chart. Using the stochastic indicator, execute your buy or sell order.


Examples


Forex Day Trading Strategy: 25 Pips A Day Using 30-Minute Chart Support and Resistance
GBPAUD 30-minute time frame

Forex Day Trading Strategy: 25 Pips A Day Using 30-Minute Chart Support and Resistance
EURAUD 30-minute time frame

Indicator


  • Stochastic Indicator. Use the setting 14,3,3. The indicator is used in the 5-minute time frame.


Buy Set Up


1. Look for a forex pair that has well-established horizontal support and resistance in the 30-minute time frame.


2. Go to your 5-minute time frame. Place a buy order when the price is at the support level and your stochastic indicator is in its oversold position.


3. Set stop loss at 15 pips. Take profit at 20 pips or higher, or at the resistance level. Look for forex pairs that have at least 20 pips (not including the spread) range.


4. Never adjust your stop loss or take profit. Trade your plan.


Forex Day Trading Strategy: 25 Pips A Day Using 30-Minute Chart Support and Resistance
EURAUD 5-minute chart BUY execution trading plan with stochastic indicator

Sell Set Up


1. Look for a forex pair that has well-established horizontal support and resistance in the 30-minute time frame.


2. Go to your 5-minute time frame. Place a buy order when the price is at the resistance level and your stochastic indicator is in its overbought position.


3. Set stop loss at 15 pips. Take profit at 20 pips or higher, or at the support level. Look for forex pairs that have at least 20 pips (not including the spread) range.


4. Never adjust your stop loss or take profit. Trade your plan.


Forex Day Trading Strategy: 25 Pips A Day Using 30-Minute Chart Support and Resistance
GBPAUD 5-minute chart SELL execution trading plan with stochastic indicator


Important Forex Day Trading Tips:

  • Use a demo trading account until you master this strategy.

  • Stop loss is always 15 pips. Never risk more than 2% of your account per trade. Less risk is always better.

  • Always remember the adage, "Only trade with money you can afford to lose."


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