Forex - One Minute Scalping Strategy
Scalping is a time proven Forex trading strategy which has now been in use for several years. There are a few different kinds of Forex scalping strategies which you can use. However today we are here to talk about one specific strategy, that being the one minute scalping strategy. Scalping on Forex is characterized by trading certain currency pairs and the trades you make are always based on realtime technical analysis.
The main point to remember here is that a one minute scalping strategy involves buying or selling currencies and closing the trades in a very short amount of time. These are very short trades which can end up being very profitable if everything goes to plan. So everything does go to plan, let’s talk about the meat and potatoes now. How does the one minute scalping strategy work and how do you use it to generate a profit?
One Minute Scalping Strategy – Some Things To Remember
Forex scalping is a great way to generate a profit, but you do need to be aware of something. This is not a strategy where you just make a couple mouse clicks and end up with big profits in your account. These are short one minute trades, which means that you need to concentrate hard.
You need to perform accurate analysis and you need to open and close the trades at the right points in time. Without a few hours of your time, decent knowledge of Forex and indicators, and a good amount of focus and patience, you won’t be successful with the one minute scalping strategy.
Something else that you need to keep in mind is that this strategy is all about quantity. You may only trade for a few bucks, but the trades are only open for one minute, which means that you can make many of them. Indeed this is the trick to the one minute scalping strategy.
You need to make a whole lot of small trades. Therefore, in order to be successful with this trading method, you need to find a reliable broker with low commissions and very small spreads. The point of this strategy is to open a certain position, gain just a few pips, and then close the trade. This is great because it means that you are not risking all that much money with each trade. So, even if you do lose a trade, you won’t be losing a fortune all at once.
This means that each trade won’t make you all that much money, but do it right and you will be executing hundreds of trades per day, each of which will make a small profit. Those small profits from dozens or even hundreds of daily trades will definitely add up to a sizable quantity.
One Minute Scalping Strategy – Some Details
There are a few things that you need to keep in mind, as well as a few things that you need at your disposal, in order to be successful with this particular Forex trading strategy. Here are some of the most important things you need to have or need to know in order to make a profit with the one minute scalping strategy.
First of all, every currency pair is valid, meaning that this particular strategy will work for every currency pair that can be traded in Forex. Second of all, as you may be able to tell by the name of this strategy, it is very strict when it comes to the one minute time frame. All trades need to only last for one minute.
There are a few different indicators which you will need at your disposal, not to mention understand and be able to read. You will need indicators such as Stochastic 5, Stochastic 3, 50 EMA, and 100 EMA. Using these indicators will give you the best chance of making profitable Forex trades. Finally, you want to trade in high volatility markets and times of day. The best time to use the one minute scalping strategy is either during New York or London trading hours.
Purchasing With The One Minute Scalping Strategy
Using the indicators we discussed above, you need to make sure that everything is in its proper place before you execute a trade. Let’s quickly talk about how to open a long trade, which means making a purchase.
You must observe the indicators. First of all, the 50 EMA needs to be above the 100 EMA (Exponential Moving Average). When you see that this has happened, you need to wait until the price comes back to the EMAs. At the same time, the Stochastic Oscillator needs to be exploited to come from below and cross the 20 level.
When you see that all three of these are in the right position, it is time to open a purchase. These are short trades, so when you see that the pips have increased by 8 to 12, you know that you are doing well. Remember your stop-losses here, which are arranged to be around 2 to 3 pips below the last low point of a swing.
Selling With The One Minute Scalping Strategy
Now, let’s quickly talk about how to sell using this strategy, also referred to as opening a short. This is very similar to opening a long, except in the opposite direction.
To be successful when selling with this strategy, you need to first make sure the 50 EMA is below the 100 EMA. You need to wait until the price returns to the EMAs, just like with buying. When it comes to the Stochastic Oscillator, you want to wait until it crosses over the 80 level coming from above.
When all of these factors are in place you can open a short immediately. Stop-losses are going to be positioned between 2 and 3 pips below the low of the previous swing point and your take profits are going to be around 8 to 12 pips from within the entry point.