Beginner’s Guide to Forex 1 minute scalping strategy


Even if you are new in Forex trading you must’ve come across the word ‘scalping’. Here is the complete guide to Forex 1 minute scalping strategy for beginner traders. 

8 August, AtoZForex – The Best Forex strategy and indicators are somewhat difficult to find for beginner traders but if you are planning to trade in real time basis then do not waffle to use the Forex 1 minute scalping strategy. In this article, I will explain to you how to use the scalping strategy and the pros and cons of using it.

A Guide to the Forex 1-Minute Scalping Strategy

Firstly, What is scalping? In simple words, scalping is the method of trading currency pair based on real time technical analysis. The main objective of scalping is to book a profit through buying or selling currencies by holding a position for a very short period of time and squaring-off for small profits. This trading strategy is considered profitable for the newbie Forex traders. But you should be aware of the strategy you are using and must focus on the position till the trade is closed.

As it is one of the basic and profitable trading strategies the traders can place more than 100 trades a day. Also, it is important to choose a broker with smaller spread and lower brokerage charges.

Also, it is important to have the proper understanding of the market. By trying different approaches and strategies, you can see your strategies from a new visual aspect and gain valuable insights.

My Chart Setup

  • Indicators: 12 exponential moving average, 26 exponential moving average, 55 simple moving average
  • Time frame(s): 1 min charts
  • Trading sessions: London session, US session
  • Currency pairs: Low spread (EUR/USD, USD/JPY)

Forex 1-Minute Scalping Strategy Buy (Long) Entry Point

  • 12 EMA crosses up the 26 EMA and 55 EMA from below
  • Open Buy position
  • Place protective stop-loss below the most recent swing low
  • Exit the trade for 9 to 15 pips profit

To stay on the safe side, stop-losses are a vital part of trading. Most importantly, you should place a Stop-losses around 2-3 pips just below the last low point of a particular swing. Moreover, as the Forex 1-minute scalping strategy is a short-term trading, it is expected to gain 8-12 pips on a trade.

Forex 1-Minute Scalping Strategy Sell (Short) Entry Point

  • 12 EMA crosses down the 26 EMA and 55 EMA from above
  • Open Sell position
  • Place protective stop-loss above the most recent swing high
  • Exit the trade for 9 to 15 pips profit

As soon as all the items are arranged at the right place, you may open a short or sell order. Moreover, the stop-losses are positioned near 2-3 pips below the last low point of the swing.

The Pros and Cons of Forex 1 Minute Scalping Strategy

In order to look how useful the strategy is for beginner traders. Here, are some of the pros and the cons you should know about:

Pros:

  1. Less Risk
  2. Small movements are easier to achieve
  3. Smaller moves occur far more frequent than larger ones.
  4. Even when the market is less volatility even then traders can book smaller profits.

Cons:

  1. Larger deposits
  2. Should have more information about the markets.
  3. Quick reflexes and mathematical skills needed.
  4. Time-consuming and something may lead to stress.

 

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