A Powerful 1 Minute Scalping Strategy for Forex Trading (2024)

Scalping the forex market on a 1-minute timeframe can be an effective trading strategy. With the right combination of indicators and solid execution, traders can capitalize on small intraday price movements. Here we break down a simple yet powerful 1-minute scalping system.

Download Best Free Scalping Strategies

Overview of 1 Minute Forex Scalping

1-minute forex scalping aims to profit from very short-term price moves. Traders open and close positions within minutes, often utilizing large leverage to amplify profits from pip fluctuations.

The fast pace requires focus and discipline. Risk management is vital as losses can mount rapidly with poor executions. Automated take profit and stop loss orders are recommended.

Some benefits of 1 minute scalping include:

• Capturing multiple micro pips in fast moves
• Avoiding overnight gaps and margin calls
• More trading opportunities per day
• Can suit part-time traders
• Low overall market exposure

The strategy covered below aims to maximize these benefits using a proven combination of technical indicators and minute chart analysis.

The 1 Minute Scalping Trading Strategy

This straightforward system uses just 3 indicators:

50 EMA(exponential moving average) – tracks the average closing price over the last 50 one-minute bars. Acts as dynamic support and resistance.

100 EMA– smoother trend filter calculated with longer 100 period bars. Helps assess directional bias.

RSI (14)– relative strength index helps spot overbought/oversold levels signaling potential reversals.

Entry: Go long if price pulls back to 50 EMA while above 100 EMA. Add position on RSI below 30.

Exit: Close longs at next 50 EMA touch going higher or if RSI hits 70.

Stop Loss: Place just below recent swing lows or 100 EMA.

This simple yet effective approach allows scalping the short-term swings while staying with overall momentum. Defined criteria also aids automated trading.

Download our advanced Forex Star Scalper Strategy for metatrader 4 platform

Adding Other Confirmation Indicators

While not required, adding other technicals can enhance performance and signal conviction:

Volume– Spikes highlight active institutional moves. Can confirm breakouts.

ATR Trailing Stop– Uses volatility bands to trail stops, maximizing profit.

MACD– Crossovers compliment RSI for momentum clues.

Supports/Resistances– Lines and previous swing points add precision on likely reversal levels.

Combining additional technical factors improves the probabilities and profitability when 1 minute scalping forex.

Pros and Cons of 1 Minute Scalping

Let’s summarize the main advantages and disadvantages:

Pros

• Captures micro intraday moves missed on higher timeframes
• Multiple opportunities during volatile sessions
• Can suit part-time traders with a day job
• Low overall market exposure limits risk

Cons

• Requires intense focus and quick execution
• Easy to overtrade out of boredom and lose discipline
• High transaction costs that eat profits
• Not ideal for volatile news events and low liquidity pairs

The fast pace and leverage makes 1 minute scalping high risk. But patient traders can thrive with an edge.

Common Mistakes to Avoid

Here are typical errors that lead to losses:

• Poor risk management – no stop loss or inadequate position sizing
• Overtrading and lack of patience for quality setups
• Caught in “revenge trading” spirals after losses
• Trading during volatile events and news releases
• Neglecting to optimize strategies for market conditions

With proper discipline, psychology and adjustments, common downfalls can be eliminated.

Q: What is the 1 Minute Scalping Strategy for Trading Forex?

A: The 1 Minute Scalping Strategy for Trading Forex is a trading style that focuses on making quick, short-term trades within the 1-minute timeframe. It is a type of scalping strategy that aims to take advantage of small price movements in the market.

Q: How does the 1 Minute Scalping Strategy work?

A: The 1 Minute Scalping Strategy works by looking for trading opportunities on the 1-minute chart. Traders who use this strategy typically rely on technical indicators, such as the EMA (Exponential Moving Average), to identify potential entry and exit points. They aim to make quick profits by scalping the market for small price movements.

Q: What are the benefits of using the 1 Minute Scalping Strategy?

A: The main benefit of using the 1 Minute Scalping Strategy is that it allows traders to take advantage of short-term price movements in the market. This trading style can be particularly beneficial for traders who prefer fast-paced trading and want to make quick profits. Additionally, the 1-minute timeframe offers more trading opportunities throughout the day.

Q: What are the best indicators to use for the 1 Minute Scalping Strategy?

A: The best indicator for the 1 Minute Scalping Strategy may vary depending on the trader’s preference and trading style. However, popular indicators used by traders include the EMA (Exponential Moving Average), which can help identify trends, and scalping indicators that are specifically designed for short-term trading.

Q: Can I use the 1 Minute Scalping Strategy with any forex pair?

A: Yes, the 1 Minute Scalping Strategy can be applied to any forex pair. However, it is recommended to choose forex pairs with high liquidity and low spreads to maximize trading opportunities and minimize trading costs.

Q: How can I enhance my trading with the 1 Minute Scalping Strategy?

A: There are several ways to enhance trading with the 1 Minute Scalping Strategy. Traders can consider using additional technical indicators or trading signals to confirm their entry and exit points. They can also practice proper risk management techniques and set stop-loss and take-profit levels to protect their trades.

Q: Is the 1 Minute Scalping Strategy suitable for beginners?

A: The 1 Minute Scalping Strategy requires traders to be quick in making decisions and executing trades. Therefore, it may not be suitable for beginners who are still learning the basics of forex trading. It is recommended for traders who have a good understanding of technical analysis and have experience in executing trades.

Q: Are there specific brokers that are best for scalping strategies?

A: Yes, there are brokers that are known to be more suitable for scalping strategies. When choosing a broker for scalping, it is important to consider factors such as low spreads, fast execution, and no restrictions on trading strategies. Some popular brokers for scalping include ECN (Electronic Communication Network) brokers.

Q: Can the 1 Minute Scalping Strategy be used for other types of trading?

A: While the 1 Minute Scalping Strategy is primarily designed for short-term scalping, some traders may also use it for day trading or swing trading by adjusting their timeframes and trading approach. However, it is important to adapt the strategy to suit the specific trading style and market conditions.

Q: How many trades can I expect to make using the 1 Minute Scalping Strategy?

A: The number of trades made using the 1 Minute Scalping Strategy may vary depending on market conditions and the trader’s trading plan. Some traders may make multiple trades in a single day, while others may choose to be more selective and make fewer trades. It is important to focus on quality trades rather than quantity.

Conclusion

For experienced traders able to act decisively under pressure, 1 minute scalping systems offer great potential. This simple yet powerful strategy provides clear criteria for identifying and managing trades intraday. With focus and commitment, the small profits compound. But like any fast-paced trading, keep greed in check and exercise prudent risk control above all else.