As a day-traders’ favorite, there are quite a lot of specifically designed strategies to trade a 15-minute chart.

The 15-minute chart is a favorite of day-traders. While scalpers may prefer lower time frames to catch more trade opportunities, day-traders could focus on the 15-minute chart to profit from larger price movements throughout the day. There are usually one or two profitable chances every day when we trade on the 15-minute chart, except on holidays and quiet trading days.

How should we trade on the 15-minute chart? There are quite a lot of specifically designed trading strategies out there. Here are some of them:

The
15-Minute Breakout

Requirements:

  • Sufficient knowledge about support resistance and
    simple candlestick reading.
  • Naked 15-minute chart with additional trend lines as needed.

The rule:

  • If it is trending in one direction and breaks a 15-minute high, then it is most probably going to continue (either upward or downward).

The caveat:

  • The strategy is more suitable for Asian and European trading hours.
  • Be aware not to open any position within 2 hours before market close in the New York session.

The 20-EMA Trading Strategy

Requirements:

  • Understanding on how EMA (
    Exponential Moving Average) works, support resistance zones, and overall trend.
  • A 20-EMA on a 15-minute chart.
  • A Daily chart.

20 EMA trading strategy

The rule:

  • Check the major trend in the Daily chart. Is it uptrend or downtrend? Only open a position if the trend on the Daily chart is in the same direction as the current trade opportunity on the 15-minute chart.
  • If prices on the 15-minute chart moved over 20-EMA with substantial buying volume, then you can buy it. If prices on the 15-minute chart moved below 20-EMA with substantial selling volume, then you can sell it. See the example above.
  • If prices have moved over 20-EMA for several days, then you can look for buying opportunities when prices retrace to the 20-EMA line. if prices have moved below 20-EMA for several days, then you can open a short position when prices retrace to the 20-EMA line.
Read:  The Forex Guy Trade Management Panel

The caveat:

  • This strategy is only suitable for breakouts and trending markets. Be aware not to use it during choppy or ranging markets.
    To improve accuracy, you could also monitor price patterns and volume indicators. There is always more than one way to use a certain trading strategy, read more to learn further.

Multiple Time Frames Trading Strategy

Requirements:

  • Knowledge about support resistance zones,
    trend lines, and simple candlestick reading.
  • To trade on every currency pair, you would need to check 15-minute, 1-hour, and 4-hour or Daily charts.

The rule:

  • Determine the major trend in the largest time frame. You could make use of the 4-hour or Daily chart.
  • Confirm that the major trend is still ongoing in the mid-term time frame (1-hour).
  • Look for entry and exit points on the 15-minute chart. You could either apply the 20-EMA strategy above, or choose other indicators such as ADX, Parabolic SAR, and Bollinger Bands. You could also prefer a naked chart as long as you have sufficient experience with patterns and candlesticks.

So, which strategy would you choose to trade a 15-minute chart? Whichever it is, make sure to first

try it out on the demo account

till you could master it well. Good luck!