Forex Trading Strategy: Scalping “1-Minute”

Forex Trading Strategy: Scalping “1-Minute”

The term scalping in the world of forex trading may have become a general term, maybe even among novice traders. What is actually scalping ?

Scalping is one of the forex trading methods that relies on technical analysis. This method aims to try to gain profit opportunities by conducting transactions in a short time and not too large targets. That is why most scalping players (commonly called scalpers ) tend to do many transactions a day.

Without stretching, let’s learn with one of the most popular scalping strategies .

“1-Minute  Scalping Strategy

This strategy is a popular scalping strategy and is relatively suitable for use by novice traders. However, that does not mean that this method does not require discipline and high concentration. This scalping strategy requires you to provide a special time to trade at least a few hours a day without distraction.

Doing dozens of transactions a day is common in scalping . That’s why if you apply this method you should choose a broker with a fairly low spread and commission.

This “1-Minute” Strategy concept is as follows:

  • Used for all currency pairs that have a small spread
  • Time-frame: M1 (1 Minute)
  • Indicator:
    • Stochastic (5,3,3)
    • Exponential Moving Average (EMA) for 50 and 100 periods
  • Best time: London and New York trading sessions

Practice!

Before we continue, as usual, I advise you to first test this strategy before it is put into practice. The best way to do a trial without worrying about losing risk is to use the demo account that we provide.

Why do you need to practice?

The first reason is that it is important for you to recognize market movements. By practicing through a demo account you will get real time market movement experience . You will be able to recognize the weaknesses and weaknesses of the strategy that you will run. You will also know whether the strategy matches your character as a trader.

Well, the second reason, even if it turns out that the strategy does not match your character and the results are negative (loss), there is no financial risk that befalls you.

Rule

Now we will discuss entry and exit strategies .

  1. Buy Rules:
    1. EMA 50 must be above EMA 100
    2. Wait for correction to the EMA area
    3. Wait for the buy signal confirmation from stochastic
    4. Place SL around 20-30 pips below the nearest swing low level
    5. Place the TP around 80-120 pips from the entry level
  2. Sell ​​Rules:
    1. EMA 50 must be below EMA 100
    2. Wait for correction to the EMA area
    3. Wait for sell signal confirmation from stochastic
    4. Place SL around 20-30 pips above the nearest swing high level
    5. Place the TP around 80-120 pips from the entry level

Strengths and weaknesses

Every strategy must have weaknesses and strengths. We start from the advantages first.

The advantages of this strategy are:

  • Risk is quite small in terms of capital
  • The targeted target is relatively small so it is relatively faster to reach the target
  • Can take advantage of narrow range movements
  • More opportunities, because small movements are created more often than large movements

Now, we also discuss the weaknesses:

  • It requires capital that is not small, because the more opportunities that are created means the more likely it is to experience losses.
  • Requires fast reaction, well-honed intuition and quick decision-making ability. These things are rarely found in novice traders.
  • Sometimes it is quite difficult to conduct transactions with a good risk to reward ratio .
  • Requires high concentration without interference.
  • A less experienced trader may experience stress.

Conclusion

Based on the explanation above, it can be concluded that if you decide to become a scalper , you must meet the following 10 qualifications:

  1. Patient
  2. Careful
  3. Not easy to stress
  4. Can quickly take effective decisions in critical situations
  5. Not emotional in trading
  6. Have adequate knowledge about various trading methods
  7. Have a high “flying hour”
  8. Have high concentration (focus)
  9. Have a high body resistance
  10. Don’t forget: fast and stable internet connection.

Good luck.

 

Forex Signal 30 is the best forex system since 2009 and has been used by thousands of traders from around the world to generate profit in forex trading. This system is created by our team of Brilliant Forex Signal Team, this system is made as simple as possible for beginner and professional traders.