Forex 1-minute scalping strategies explained

Education

A closer look at scalping in FX

ForexLive

The purpose of this article is to
provide you with a detailed explanation of what the FX 1-minute scalping
strategy is and exactly how to use it.

As a number of different
indicators are used in this method, it is best suited for traders with at least
some experience, who are using a platform such as the one provided by EagleFX.

We’ll also discuss the advantages
and disadvantages of using this type of strategy, while also providing some
general tips for reading market conditions accurately so as to improve your
overall success rate.

Even if you are entirely new to
forex trading, you’ve likely heard of the “scalping” style of
trading. Scalping, like other FX strategies, is centered on real-time data
analysis, which is also referred to as technical analysis.

The primary objective of scalping
is to turn a profit through buying or selling currencies by holding onto a
position for only a brief period of time, and closing the trade soon after, all
the while locking in some amount of profit.

In order to use this strategy, you’ll need to trade
with a broker that does allow scalping (not all brokers do), and also allows
for micro lot trading, such as EagleFX.

Preparing to use the 1-minute scalping strategy

Although it does require the
ability to read charts, this scalping strategy is actually suitable for
beginner level forex traders.

Having said that, you should note
that this method will require a commitment of your time and focus. If you
cannot commit at least a few hours each day to this FX strategy, then you may
want to consider using other, less labor-intensive trading strategies.

The internet is overflowing with
strategies, but do keep in mind that not all of these will actually be
effective.

This scalping strategy is
intended to be implemented during day trading, as it consists of opening a
trade, waiting for the asset value to climb a few pips, and then closing the
trade once that happens.

It truly is among the most
straightforward and practical of all trading strategies. The principal element
of Forex scalping is simply quantity. When using this method, it is not
uncommon for a trader to enter into hundreds of trades during the course of a
single day.

Because of this, you’ll want to
select a broker with low spreads, such as EagleFX.

This strategy involves the
following:

  • Asset Type – Currency Pairs
  • Time-Frame: 1 Minute
  • Indicators: Stochastic 5, 3, 3, and 50
    EMA, 100 EMA* (available on MetaTrader 4)
  • Trading Sessions: London, New York

EMA (short for Exponential Moving
Average) is a popular type of moving average, but isn’t widely used as the
Simple Moving Average (SMA). Note that the 100 EMA is available on the
MetaTrader 4 platform which is offered by EagleFX.

You’ll want to test out a variety
of entry points when practicing this method and may want to use a free EagleFX
to practice using mock trading funds. You’ll also need to understand how to set
a stop-loss, as you’ll want to use this platform function to exit each trade
when necessary.

Although the goal is to lock in
small amounts of profit, over the course of a day, these small amounts can add
up to a significant total. As a final tip, never forget to set a stop-loss.
Scalping strategies are often linked to strong emotion, and with good reason.

Fast and furious trading is
certainly exciting! Just be sure to keep a level head and remember, this method
is about the big picture and therefore there is no reason to become upset over
small losses.

This article was submitted by EagleFX.

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