Forex trading : What is a minute scalping strategy?

1 Minute Scalping Strategy - A Complete Guide | NSBroker , The basic idea behind scalping is to open a large number of trades that usually take either seconds or minutes. 

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However, some speculative strategies developed by professional traders are becoming more popular for example, some traders place buy and sell orders simultaneously and then use certain events in the order book to make short-term trading decisions.

A one-minute forex scalping strategy involves opening a specific position, winning a few pips, and then closing the position. Since you only earn a few pips on each trade, it is important to choose a broker with smaller spreads and the lowest commissions.

For this reason, one of the key aspects of Forex scalping is quantity, and it is not uncommon for traders to make more than 100 trades per day.

How does this strategy work?

You need to think about the instruments you will be trading, timeframes, indicators, and trading sessions:

Instruments: any currency pair;

Timeframe: 1 minute;

Indicators: Stochastic 5, 3, 3, 50 EMA and 100 EMA * (available on MetaTrader 4);

Preferred Sessions: London, New York - high volatility.

While you can use this scalping strategy with any currency pair, it may be easiest to use with the major currency pairs as they have the fewest spreads available. Additionally, this approach may be most effective during high-volatility sessions, which are usually New York closures and London business hours.

Forex Scalping Strategy For One Minute. Entry point (long)

Now that you have applied the indicators and your chart looks clear, let's review the signals needed to open short and long positions using the simple forex scalping technique. The first EMA (50) should be placed above the second EMA (100). 

If this is the case, then it is necessary to wait for the price to be returned to the exponential moving averages. In contrast, a random oscillator is used to cross 20 steps from below. Once you see the three items properly arranged, it may be beneficial to open a long (buy) order.

In short, the indication of the buy orders is as follows:

Every time the 50 EMA exceeds the 100 EMA, you must be prepared to open a buy order.

If the price at which you want to execute the order is close to the EMAs and the stochastic oscillator rises above 20, open a long position.

To reduce the risk, you can also place a stop loss 2-3 pips below the last low of a given swing.

Since the 1-minute scalping strategy is a short-term strategy, you are generally expected to gain between 8-12 pips when trading. Therefore, it is best to keep your take profit in the range of 8-12 pips from the entry price.

Forex Scalping Strategy 1 Minute Sell Entry Point (Short)

To place a sell trade, the first EMA (50) must be placed below the second moving average (100). As with long entry points, we wait for the price to return to exponential moving averages. Once all positions are in place, you can open a sell or sell order without hesitation. Exactly the same thing is happening here.

In short, the short command sign is as follows:

• To determine the execution time of a short order, use the same strategy indicators in reverse order;
• The 50 EMA should be below the 100 EMA and the spot price should be close to these lines; the stochastic should drop below the 80 EMA mark.
• Once again, stop-losses are placed 2-3 pips above the last high of the swap, and the take-profit should remain within 8-12 pips of the entry price.

Advantages and disadvantages of a one-minute scalping strategy

To determine whether 1-minute Forex scalping can be beneficial for your trading style, we will look at the advantages and disadvantages of scalping.

First of all advantages:

Low-risk exposure, short presence in the market reduces the likelihood of experiencing adverse events.

Small movements are relatively easy to achieve, which means that more supply and demand imbalance is needed to ensure larger price changes.

The main logic behind scalping is that smaller movements occur more frequently than larger movements.

Even when the markets are relatively quiet, a good Forex trader can benefit from many small moves.

Secondly, disadvantages:

A large deposit is required

Bankers and dealers have a certain advantage over amateur speculators because they have more information about the market.

A one-minute scalp requires quick reflexes, good instincts, and athletic skills;

It may be difficult to scalp and maintain a good risk/reward ratio. For example, with a ratio of 2: 1, a take profit at 10 pips requires a stop loss of 5 pips, which makes it so close that it cannot be stopped in most cases;

A waste of one minute is time-consuming and can cause stress.