Before getting into explaining 1 minute Forex scalping strategy, it is important to explain what scalping denotes. This form of trading is very hectic and is completely dependent on technical form of market analysis. Traders have to hold their trading positions for a short span of time and be content with small amount of profits.
Time and awareness are important factors here and for traders who are up for scalper trading, here’s a reliable FX 1 min scalping system.
What’s Needed for the Chart Set-Up?
Traders will require indicators in the name of 12 EMA, 26 EMA and 55 SMA – (EMA Exponential Moving Average and SMA is Simple Moving Average)
Time Frame selection will obviously be 1 minute chart with trading sessions between London and US.
Currencies to choose will be EUR USD, USD and JPY.
This will be the basic 1 minute Forex Scalping Strategy chart set up.
For Buying from Entry Points:
Traders wanting to buy a long position need to ensure that the Stop Loss is placed properly around 3-4 pips underneath the last particular swing point. As it is a Forex 1 min scalping system, this is surely going to fetch around 12-16 pips of profits – i.e. if everything goes well.
The potential BUY signal will come about when the 12 EMA crosses the 26 EMA and 55 SMA from underneath. On seeing this, traders should open up their BUY positions. Also, remember to take profits between 12 and 16 pips and then exit the trades.
For Traders Wanting to Sell Short From Their Entry Points:
One has to watch the charts carefully for any movements which the 12 EMA makes. If the 12 EMA makes a move and crosses the 26 EMA and 55 SMA from over it, then that is a break out point. Traders ought to open up their sell positions there itself to take the expected 12-16 pips of profits and then exit trades.
Other Perks of This 1 Minute Forex Scalping Strategy:
It is one strategy which a lot of new traders make use of. It is pretty easy to work with; the charts have less complex signals and that makes interpreting information much simpler.
The risk factor is less in this Forex 1 min scalping system.
Smaller fluctuations account for easier achieving.
It is still reliable during situations when very little is happening in the market.
However, this strategy does require traders to –
Have a thorough knowledge about the market.
They need to be sharp in technical mode of market analysis and should also have refined mathematical aptitudes.
At first, it can be a bit stressful owing to the fast fluctuating nature of the market. So, one would have to work with it several times.
Getting Started with It:
The 1 minute Forex Scalping Strategy is definitely something beginners can try out. The best way to get started with it would be to test it out in a MT4 Demo account. So, without delay, get to it.
Good Luck traders!
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