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1 minute scalping strategy PDF 2025
1 minute scalping strategy
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A 1-minute scalping strategy involves executing trades on the 1-minute chart, aiming to capture small price movements quickly. This strategy requires precision, discipline, and the ability to make rapid decisions. Here's a step-by-step guide to an effective 1-minute scalping strategy:
Key Features of the 1-Minute Scalping Strategy
Timeframe: 1-minute chart.
Trading Instruments: Major currency pairs (e.g., EUR/USD, USD/JPY) with high liquidity and low spreads.
Trading Hours: Focus on volatile sessions like the London or New York sessions.
Indicators Used:
Exponential Moving Averages (EMAs): For trend direction.
Relative Strength Index (RSI): To identify overbought/oversold conditions.
Bollinger Bands: To measure volatility and identify entry points.
Setup for 1-Minute Scalping
Indicators:
Add two EMAs to your chart:
EMA (50): For identifying the overall trend.
EMA (100): To confirm the trend.
Add the RSI (14) with overbought and oversold levels set at 70 and 30.
Add Bollinger Bands (20, 2) to identify price extremes.
Chart Selection:
Use a forex broker with low spreads and fast execution.
Focus on highly liquid currency pairs to minimize slippage.
Entry Rules
Long Trade (Buy):
The EMA (50) is above the EMA (100) (uptrend).
Price touches or dips slightly below the lower Bollinger Band.
RSI is below 30 (oversold).
Enter a buy trade when price starts reversing upwards.
Short Trade (Sell):
The EMA (50) is below the EMA (100) (downtrend).
Price touches or rises slightly above the upper Bollinger Band.
RSI is above 70 (overbought).
Enter a sell trade when price starts reversing downwards.
Exit Rules
Take Profit: Aim for 5-10 pips per trade.
Stop Loss: Place a stop-loss 2-3 pips below/above the recent low/high.
Exit the trade if price reaches the middle Bollinger Band or if momentum weakens.
Risk Management
Position Sizing: Risk only 1-2% of your capital per trade.
Max Trades: Limit the number of trades per session to avoid overtrading.
Spreads: Use a broker with tight spreads since scalping profits are small.
Example in Action
Scenario: EUR/USD
Trend: EMA (50) is above EMA (100), indicating an uptrend.
Trigger: Price touches the lower Bollinger Band, and RSI drops below 30.
Entry: Enter a buy trade as the price starts moving upward.
Exit: Close the trade once the price reaches the middle Bollinger Band or after achieving a 5-10 pip profit.
Tips for Success
Fast Execution: Use a broker with a reliable platform and low latency.
Stay Focused: Avoid distractions during trading.
Monitor Volatility: Avoid trading during low-volatility periods.
Demo First: Test the strategy on a demo account before using real funds.
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