Best 1 Minute Scalping Strategy
The best scalping strategy on the 1-minute timeframe works much like the larger multiple timeframes such as the daily, weekly, and even monthly. What happens on the 1-minute candle happens the same way on the monthly candle; the only difference between them is time. There are several strategies for trading the 1-minute timeframe, and today we explain one of them: the best 1-minute scalping strategy.
The Strategy
This 1-minute scalping strategy is easy to learn and can be profitable when it is applied correctly.
Requirements for the 1-minute trading strategy
- Trade the most liquid pairs, such as majors like EUR/USD.
- Use the 1-minute timeframe.
- Trade during the most active market hours (the European session and the US session).
Required indicators
For this strategy we need two types of indicators:
- Trend indicators – we use the 50 EMA and the 100 EMA.
- Oscillators – we use the Stochastic with settings 5,3,3.
Look at the following figure:
Rules for trading with the 1-minute strategy
Step 1: Wait for a crossover between the 100 EMA and the 50 EMA
One use of the moving average is to identify the trend. When the 100 EMA (blue) crosses the 50 EMA (red) to the upside, it signals that the trend may have changed.
In the figure, a crossover occurred between the 100 EMA and the 50 EMA to the upside, and you will notice the trend changed from down to up. But we cannot enter a buy trade until another signal appears, which leads us to the second rule.
Step 2: Wait for price to return to the moving average
In the previous figure, price returned and touched the moving averages, then rose again. At this point you could open a buy trade, but you must first wait for a crossover between the two Stochastic lines. You will notice that after the two lines crossed, the Stochastic started moving to the upside.
Note: if the Stochastic reaches below the 20 level and a crossover between its two lines occurs to the upside, wait until the indicator crosses the 20 level.
Step 3: Set the stop-loss and take-profit orders
In this strategy we use a fixed stop-loss placed 3 pips below the entry point, and a take-profit of 10 pips, no more than that.
Note: the above is an example of a buy trade. You can use the same rules but in the opposite direction when entering a sell trade.
Finally, we can say that the 1-minute scalping strategy is what is called the triple strategy. While many of our preferred strategies focus on maximizing your potential for large profits, the 1-minute scalping strategy focuses on finding many small profits within a short period. Rather than focusing on the quality of trades, scalpers care more about quantity.
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Read more:
- Trading strategy concepts for trading around the news in the forex market
- Best strategies to master pullback trading and seizing opportunities
- Parabolic SAR and moving average strategy
Frequently Asked Questions
What is the best indicator for a day trader?
Some popular and preferred indicators for the day trader include Bollinger Bands, moving averages in all their versions, and the MACD.
What is the best 1-minute timeframe strategy?
One of the most common 1-minute scalping strategies is known as trend following. Its name says it all: it is a trading strategy that identifies an already established trend and then follows it until it changes direction.
What are forex strategies?
A forex trading strategy is a technique a forex trader uses to decide whether to buy or sell a currency pair at any given time.
What is a scalping strategy?
Scalping is a trading style that specializes in profiting from small price changes and making a quick profit from reselling. In day trading, scalping is a term for a strategy that prioritizes making large quantities of small profits.
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