Table of Contents
1-Minute Scalping
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.
What do you need to know about forex scalping?
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
What is a 1-minute scalping trading method?
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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Which indicators to use for the 1-minute scalping method?
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:
SMA
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.
EMA
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
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.
Stochastic Oscillator
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.
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1-minute scalping trading 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.
How to enter a long position?
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
How to enter a short position?
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
Pros and Cons of 1-minute scalping method
To evaluate forex 1-minute scalping, we will examine the benefits and drawbacks of scalping.
Pros
- The outcomes of the 1-minute strategy are visible after just 1 minute, and thus after such a short time, you may know if you won to progress or you lost to strategize for recovery of your loss.
- A large number of trades– using the 1-minute technique allows you to conduct many deals in a single day.
- The primary reason for scalping is that tiny moves occur far more frequently than bigger ones.
Cons
- Traders take advantage of amateur scalpers because they understand the market better.
- A one-minute scalp needs quick reactions.
- Scalping for one minute might be stressful.
1-Minute Scalping Summary
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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Greetings, fellow trading enthusiasts! As someone deeply immersed in the dynamic world of forex trading, I bring to you a wealth of firsthand expertise and a comprehensive understanding of the intricacies involved in the 1-minute scalping method. Let's dive into the key concepts covered in the provided article.
1. What do you need to know about forex scalping?
- Forex scalping involves profiting from small price changes, typically on timeframes ranging from 1 to 15 minutes.
- Traders aim to hold positions for a short duration, often opting for quick exits within 60 seconds.
- Despite its fast-paced nature, scalping requires a well-thought-out plan for success.
2. What is a 1-minute scalping trading method?
- The 1-minute scalping method entails initiating a trade, gaining a few pips, and promptly closing the position.
- Traders seek brokers or prop firms with minimal spreads and costs due to the small profit margins per trade.
- High trade volume is essential in 1-minute scalping, with some traders executing over 100 trades daily.
3. Which indicators to use for the 1-minute scalping method?
- Indicators play a crucial role in identifying entry and exit points for scalping.
- Preferred indicators include:
- Simple Moving Average (SMA): Indicates average prices over a specified period.
- Exponential Moving Average (EMA): Provides weighted values for recent prices, ideal for quick responses to market changes.
- MACD (Moving Average Convergence Divergence): Highlights buy and sell signals based on the difference between two EMAs.
- Stochastic Oscillator: A momentum indicator signaling potential price reversals.
4. 1-minute scalping trading strategy
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How to enter a long position:
- Wait for the 50 EMA to cross above the 100 EMA.
- Wait for the price to return to the EMAs.
- Ensure the Stochastic is above 20.
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How to enter a short position:
- Ensure the 50 EMA is below the 100 EMA.
- Wait for the Stochastic Oscillator to fall below 80.
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Set take-profit levels 8-12 pips from entry and place stop-loss accordingly.
5. Pros and Cons of 1-minute scalping method
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Pros:
- Quick outcomes visible within a minute.
- Allows for a high number of trades in a day.
- Takes advantage of frequent small price moves.
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Cons:
- Experienced traders may exploit novice scalpers.
- Requires rapid decision-making.
- Can be stressful due to the short timeframes.
6. 1-Minute Scalping Summary
- Scalping is a highly successful but demanding trading method.
- Maintaining a high win rate is crucial for the strategy's success.
In conclusion, the 1-minute scalping method offers a thrilling yet challenging approach to forex trading. As you embark on this adventure, remember the importance of a well-crafted strategy and the necessity for quick decision-making in the fast-paced world of scalping. Happy trading!
