It is easy to follow a minute scalping strategy.

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Novice and inexperienced traders are always looking for methods to enhance their trading. Here, we’ll guide you through some of the most effective one-minute scalping strategies.

Each strategy can be employed to trade stocks, commodities, cryptocurrency, equities, and forex. We will guide you through:

  • What exactly is scalping?
  • The variables of the strategies
  • How do you enter buying and selling positions
  • Where can you place stop-losses and Take-profits
  • The benefits and drawbacks of scalping

What is scalping?

Scalping can be described as the method of trading where the trader makes money from tiny price fluctuations. The aim of scalping is to earn as small a profit as possible. The trades are generally held for a brief period as the trader who is executing the scalping strategy won’t be able to hold positions for a long time.

Scalping is a strict plan of exit, since one big loss could wipe out any gains that you may earn.

Let’s examine the process of scalping.

How does scaling work?

Forex scalping is a trade method used by forex traders to purchase the currency pair or trade it, and then keep it for a limited amount of time to try to make money. When scalping is used to make modest gains, for example, 5-20 pips per trade, the profits from these trades can be enhanced by increasing the size of the trade.

The fundamental principles of scalping is:

  • limits the risk of lessened exposure. A short exposure to the markets reduces the chance of encountering an unfortunate incident.
  • Lesser moves are simpler to make. A larger imbalance between demand and supply is required to justify larger price fluctuations. For instance, it’s simpler for a stock to complete a $0.01 move than to achieve a $1 price change.
  • The smaller moves are more frequent than bigger ones. Even in markets that are relatively quiet, there are numerous small moves that scalpers are able to make use of.

To better understand scalping, we will examine the 1-minute scalping strategies.

Scalping Strategy 1

 

This one-minute scalping technique is extremely simple to master and extremely lucrative if used correctly.

So, what are the things you need to do to get started using this method?

  • Asset You should aim to trade with an investment that’s moving
  • Timing frame The chart is required to be set for a one-minute timeframe
  • Indicators It is recommended to utilize tStochastic 5 3, and 50 100 EMA
  • Sessions Trading during high-risk New York and London trading sessions

How Do I Start A Long Position

Let’s look at the best way to take an open position in the scalping strategy. A buy position in a scalping strategy must satisfy the following requirements:

  1. To open a buy-sell position first, we must keep an eye on the market until the 50 EMA (Exponential Moving Average) is higher than the 100 EMA.
  2. Then, we must keep an eye on price movement to return to the EMA’s.
  3. In the end, the stochastic oscillator has to be above 20 levels.

If all three are true, it’s the time to start the purchase order (long position).

How Do I Apply For A Short Position?

To open in a shorter position and to sell to buy, you’ll need the following conditions to occur:

  1. The 50 EMA must be lower than the 100 EMA.
  2. Like the purchase entry, you must be patient until the price is at the price of the EMAs.
  3. The Stochastic Oscillator should be below the level of 80 prior to you beginning your sell order.

Stop-Loss Levels and Limits of Take-Profit

It is important to note that the SL as well as TP level of this strategy are laid out in the following table:

  • Take-profit The optimal take-profit amount to use with this method is 8–12 pip from the entry point.
  • Stop-loss The most suitable location for a stop-loss to be between two and three pip over or below the most current level of swing.
  • To master a new trading strategy, you have to try it out. Testing your strategy on the demo account will ensure that you will be able to master it without having to risk your precious money. Here are our picks for you: three of the most effective demo accounts on the market.

Scalping Strategy 2

  • The second strategy is simpler to comprehend and follow. So let’s dive right into the details you’ll have to do to implement it:
    • Asset: Assets that have lots of fluctuation (e.g., currency pairs, such as the EUR/USD)
    • Time frame: To use this scalping technique, you’ll have to utilize both the 30-minute chart and the one-minute one.
    • Indicators To implement this strategy, you’ll only require the Bollinger band to be set up.
    • Sessions: As before, the most suitable sessions to use this approach are the New York and London sessions.

How Do I Make a Short or Long Position?

  • In order to be able to take a position using this method, there are just two aspects you should be aware of. I’ve put them in one.
    • In the beginning, you have to establish the trend and market conditions by using the 30-minute timeframe
    • If the price is on an uptrend , then you open an order to buy once the price is above the upper Bollinger band.
    • If price is trending downwards, then you can enter an selling position when price is above the top of the Bollinger band.

Stop-Loss Levels and Take-Profit Levels

    • As you might have guessed in the image, profit targets should be in the area where the price crosses the other side of the Bollinger band.
    • Stop-loss levels must be set at least 3 pips higher, or under the candle breaking the Bollinger band.
  • Practice this strategy.
  • Naturally, for every type of trading plan, there are advantages and disadvantages. One-minute scalping strategies for trading on the forex market aren’t any different.

The Advantages of Scalping

    • The trade is risk-free since it will only be open for a brief time
    • The plans for trading allow more frequent trades since their size is smaller. size.
    • The strategies also provide numerous possibilities for entries throughout the day

The Disadvantages of Scalping

    • Novice scalpers could be in danger of losing their money if they’ve not completed a thorough backtesting
    • The goal of achieving a high risk-to-reward ratio can be a challenge.
    • There is a significant chance of numerous losses in a row
    • These methods require you to commit an enormous quantity of time to charts

THE BOTTOM LIST

  • In the beginning, these strategies are easy and much more profitable than swing trading because they allow you to make a full day’s profits within a matter of minutes.
  • However the implementation success of scalping strategies for 1 minute could cause unexpected problems. It is important to recognize that scalping strategies are only appropriate for certain kinds of traders.
  • Successful scalpers need to demonstrate:
    • A high degree of discipline as well as
    • You must be able to adhere to the rules of your trading system. always.
    • Scalpers are frequently required to make important decisions quickly and without hesitation.
    • However, scalpers are flexible and can tell the difference between a trading strategy that’s successful and one that’s not.
  • At the end of the day, a scalper who is successful is one who’s adept at playing on the strength of markets and exiting trades at extremely favorable times.

 


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