Traders always look for ways to enhance their trading tactics. They apply different strategies that can help them seal the deal.
One of the most popular strategies among the trading community is scalping.
Scalping is like an action-packed movie where there’s too much action. You enter and exit the trade in a blink of an eye.
In this guide, we’ll talk about the 1-minute scalping trading method. Then, we’ll cover every inch of detail about the strategy.
So, buckle up. This is going to be a fun and educational ride!
This guide is for teaching purposes and is not a recommendation.
Scalping is the practice of profiting by buying or selling currencies, holding the position for a short amount of time, and then closing the position for a bit of profit.
Forex scalping often comprises of profiting on small price changes on timeframes ranging from 1 to 15 minutes. Many traders, however, may opt to liquidate their positions in roughly 60 seconds rather than wait for a quarter-hour or more.
Beginners often drive towards scalping because of its fast-paced nature. However, as with any other trading style, you need to have a sound plan before applying the 1-minute scalping trading method.
If you want to learn more in-depth we have prepared a special workshop on forex scalping
The 1-minute scalping method in forex entails starting a trade, gaining a few pips, and closing the position. Because you only make a few pips for every trade, selecting a broker or a prop firm with the shortest spreads and lowest costs is critical.
As a result, volume is a crucial part of forex scalping, and traders frequently place more than 100 trades every day.
The fundamental goal of such methods is to use trade volumes rather than complicated technical analysis.
This one-minute scalping approach is relatively simple to master and can be extremely rewarding when utilized correctly.
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Indicators are an important part of technical analysis. Because of the action-packed nature of scalping, you have to use indicators that can help you identify entry and exit points.
You can use every indicator with the scalping strategy, but the ones we prefer are:
The Simple Moving Average (SMA) is the fundamental indicator that traders use to build a trading strategy. It displays the average price of a trader’s deals over a specified period.
Essentially, it assists traders in determining if the cost of their stocks, commodities, foreign exchange, and so on is rising or falling, allowing them to discover a trend.
Another valuable indicator is the Exponential Moving Average, allowing traders to further weightage recent prices. Because it responds faster to recent price changes than historical price movements, the EMA indicator is one of the best scalping indicators.
Traders use this technical indicator to generate buying and selling recommendations based on historical average crossings and divergences.
MACD is another popular indicator used by traders. The MACD scalping indicator is calculated by subtracting the 26-day EMA (exponential moving average) from the 12-day EMA. The 9-day EMA serves as the MACD default setting or signal line to highlight buy and sell signals.
Another popular indicator is the Stochastic Oscillator, generally known as a momentum indicator. It is based on the basic principle that momentum precedes price.
As a result, traders employ this scalping indicator to acquire alerts of natural movement before it occurs. The indicator also states that the price of an asset is either overbought or oversold. Using it on a 1-minute timeframe indicates whether the price is going to halt the ongoing trend in the next few minutes.
So, let’s see how to implement the 1-minute forex scalping strategy.
Now that you know what a 1-minute scalping strategy is and what are some of the indicators you can use, let’s illustrate how you can enter long and short positions.
The indicators we are using for this strategy are 50 and 100 EMAs and Stochastic.
Let us now concentrate on entering a long position on the strategy. In a scalping strategy, a buy position must match the following criteria:
To establish a buy position, we must wait for the 50 EMA (Exponential Moving Average) to cross above the 100 EMA. Second, we must wait for the price to return to the EMAs. Finally, the Stochastic must be above 20.
If all three of these statements are satisfied, we can enter long.
You can set the take-profit level 8-12 pips high from your entry point. You can place the stop-loss below the recent swing low.
1-minute scalping strategy bullish trade setup
The following events must occur to enter a short position:
The 50 EMA must be lower than the 100 EMA. Before going short, the Stochastic Oscillator must fall below 80.
The appropriate take-profit level is 8-12 pips from your entry point. You can place the stop-loss near the recent high.
2-minute scalping strategy bearish trade setup
To evaluate forex 1-minute scalping, we will examine the benefits and drawbacks of scalping.
As we end our forex scalping strategy guide, we would like to give you a few crucial points to think about before login into your following markets accounts and preparing your charts!
Scalping is one of the most successful trading methods available; nevertheless, you must maintain a high win rate to guarantee that the approach is fruitful and profitable.
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