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1 Minute Scalping Strategy in Trading – Best Indicator for 1m Chart

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Written by Timothy Sykes
Reviewed by Friedrich Odermann Fact-checked by Ed Weinberg
Updated 1/30/2024 12 min read

1 Minute Scalping Strategy — a term that might sound intimidating for some beginners. But don’t be fooled; it’s a trading style that can give you the edge if you’re hungry to master it. It’s all about grabbing small price changes — typically, as soon as they become profitable. Let’s dive into it.

In this article, we’ll break down the nuances of 1-minute scalping, shedding light on the charts, indicators, and strategies that can lead to profits. Whether you’re a seasoned trader or a newcomer to the forex market, understanding this approach can be a game-changer.

I’ll answer the following questions:

  • What is the 1 Minute Scalping Strategy in forex trading?
  • How does the 1 Minute Scalping Strategy work?
  • Who should consider using the 1 Minute Scalping Strategy?
  • What are the best technical indicators for the 1 Minute Scalping Strategy?
  • What are the key components of the best forex scalping strategies?
  • How important is risk management in the 1 Minute Scalping Strategy?
  • What are the pros and cons of the 1 Minute Scalping Strategy?
  • How do you choose the right forex scalping broker?

Let’s get to the content!

What Is Scalping in Forex?

Scalping in forex trading is all about capitalizing on small price movements. It’s a short-term strategy that involves rapid buying and selling where traders, aptly named scalpers, aim to secure quick profits. In this approach, the timeframe is key, and trades often last just a few minutes.

Now, don’t mistake this for an easy path to success. Scalping requires sharp decisions, a well-defined strategy, and an understanding of trading indicators. But for those willing to put in the time and effort, scalping can be a profitable part of your trading repertoire.

Understanding different trading strategies is essential for every trader, and one popular approach is scalping. While day trading and swing trading have their merits, scalping focuses on making quick profits from small price movements. If you’re interested in exploring this further, you might want to delve into the world of day trading scalping. This approach can be a valuable addition to your trading toolkit, offering insights into rapid trading techniques.

How Scalping Works

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How does scalping work? It utilizes short time frames, following the trend, and grabbing profits before the market shifts. Scalpers focus on minute price changes, using charts and indicators to predict the next shift in price.

Imagine an uptrend in a currency pair. The scalper analyzes the price action, enters the position, and exits with a small profit before any downtrend begins. Efficiency and accuracy are key here, and using the right indicators can make all the difference.

Swing trading is a strategy that focuses on capturing gains in a stock (or any financial instrument) over a period of a few days to several weeks. Unlike scalping, where positions are closed in minutes, swing trading allows for holding positions over a more extended period. This approach requires a good understanding of market trends and the ability to analyze market patterns. If you’re interested in exploring swing trading further, consider reading about swing trading strategies. These strategies can provide you with a comprehensive understanding of how to capitalize on market swings.

What Is 1 Minute Scalping Strategy?

The 1 Minute Scalping Strategy is a precise trading style, focusing on a 1-minute time frame. It depends on market volatility to capitalize on rapid price movements within a 60-second window, aiming for quick, small profits. The charts and indicators used in this strategy are tailored for swift decision-making.

This approach is not for everyone. It requires intense focus, understanding of the market direction, and impeccable timing. But for those who have the ability and discipline to master it, it can lead to consistent results in the forex trading world.

What Type of Traders Should Go for 1 Minute Scalping Strategy

Is 1-minute scalping for every trader? Not necessarily. It’s ideal for those who can make rapid decisions, manage stress well, and have a keen eye for market volatility. Scalpers look for opportunities within small market moves and must act quickly.

If you’re someone who prefers analyzing longer trends, this might not be your trading style. But if you thrive on the fast pace, can stick to a defined strategy, and have the capital to manage the risk involved, this might just be your arena.

Best Technical Indicators for 1 Minute Scalping Strategy

The art of 1-minute scalping relies heavily on selecting the right technical indicators to guide your trades. This strategy benefits from tight spreads and relies on precise timing, so a scalper who uses technical indicators is at an advantage.

Your setup can include various indicators, each serving a unique purpose to identify optimal entry and exit positions. For example, Moving Averages can pinpoint the short-term trend direction, while the Stochastic Oscillator can identify overbought or oversold conditions. The range of indicators might also include the RSI (Relative Strength Index) to measure the speed and change of price movements. It’s about blending these tools to align with your specific strategy, with the ultimate goal of optimizing performance and increasing money gains in a number that resonates with your trading goals.

Moving Averages

One of the favored indicators for 1-minute scalping is Moving Averages, particularly EMA (Exponential Moving Average). It helps in identifying the short-term trend direction in a given asset. Scalpers use it to find entry and exit points, optimizing their trades for quick profits.

Stochastic Oscillator

The Stochastic Oscillator is another vital part of the 1-minute scalping strategy. It provides signals to identify overbought or oversold conditions. This indicator helps the scalper in deciding when to enter or exit a position based on price levels and market conditions.

RSI Indicator

The RSI (Relative Strength Index) Indicator is used by scalpers to measure the speed and change of price movements. By understanding the momentum, scalpers can take advantage of small price shifts, making informed decisions in their trades within the 1-minute time frame.

Key Components of the Best Forex Scalping Strategies

The best forex scalping strategies are not solely about the indicators but encompass a holistic approach. It begins with understanding your risk tolerance, setting clear money management guidelines, and identifying the best positions to enter and exit trades. Key components include the setup and timing of trades, ensuring that you’re not just following the ones that appear lucrative but those that align with your overall strategy. Risk management, discipline, and a solid understanding of market conditions form the foundation. Performance metrics should also be evaluated regularly, allowing for adjustments based on lessons learned and shifting market dynamics. The strategy needs to be flexible, accommodating a range of market conditions, while maintaining the core principles that suit your individual trading style.

Risk Management

Scalping demands disciplined risk management, with a clear trading plan for each trade. With multiple trades in a day, a loss in one can snowball quickly. Scalpers must set a clear stop-loss order and profit target for every trade, ensuring their capital is protected.

Trading Discipline

Discipline in trading goes hand in hand with strategy. Scalpers must adhere to their trading plan if they want to profit since it capitalizes on minor price changes, avoiding impulsive decisions that can lead to losses.

Sticking to the defined entry and exit criteria is the best way to prepare for success in scalping.

Understand Market Conditions for Scalping

Understanding the market is essential for any scalping strategy, since it requires frequent trade entries and exits. Knowing when to trade and when to step back requires insights into market trends, price action, and volume.

Scalping works best in certain market conditions. Being aware of these conditions allows scalpers to operate effectively.

Define Your Goals

Clear goals guide a scalper’s actions. Whether it’s a daily profit target or a longer-term objective, defining your goals aligns your trading strategies and helps maintain focus. Remember, in the world of scalping, every trade counts.

Pros and Cons of 1 Minute Scalping Strategy

The 1-minute scalping strategy offers the thrill of quick decisions and potential profits, but it comes with risks.

On the plus side, there are multiple opportunities daily, and profits can add up. This strategy aims for small, consistent profits, offering multiple opportunities for gains throughout the day.

However, it requires intense focus, and the small losses can accumulate quickly. This approach is for traders ready to dedicate time and energy to it, and who can manage multiple trades simultaneously.

The Best Time for Forex Scalping

Timing is everything in 1-minute scalping. The best times usually align with the major forex market hours, like the London or New York sessions. During these times, liquidity and volatility are higher, providing more trading opportunities.

How To Choose a Forex Scalping Broker

Choosing the right broker is crucial in scalping. Look for a broker that offers low spreads, supports the currency pairs you want to trade, and has a platform which can execute trades within a 1-minute chart. Evaluating these criteria ensures that your scalping strategies can be executed smoothly.

Choosing the right broker for scalping is a critical decision. Having access to tools like the VWAP (Volume Weighted Average Price) can be beneficial. If you want to understand how VWAP can be integrated into your trading strategy, explore this guide on VWAP. It can provide you with insights into using volume data to enhance your trading decisions.

Scalping takes advantage of liquidity and speed in the forex market, making it a profitable strategy for those who can master it.

It isn’t a silver bullet for your trading plan — but 1-minute scalping is one of the many topics you should learn as part of your trading education!

Trading isn’t rocket science. It’s a skill you build and work on like any other. Trading has changed my life, and I think this way of life should be open to more people…

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Trading is a battlefield. The more knowledge you have, the better prepared you’ll be.

Do you use 1-minute scalping in your trading strategy? Let me know in the comments — I love hearing from my readers!

Frequently Asked Questions

Is 1 Minute Scalping Profitable?

Yes, 1-minute scalping can be profitable, but it requires expertise, discipline, and a well-defined strategy. Profits are typically smaller per trade, but they can add up if the strategy is executed effectively.

How Can I Improve My 1 Minute Scalping Strategy?

Improvement comes with practice, analysis, and constant learning. Utilize various indicators, test different currency pairs, and keep track of your trades. Learn from both success and failure, and refine your strategy.

Can 1 Minute Scalping Be Applied to Other Trading Markets?

While mainly used in forex, 1-minute scalping can be applied to other markets, such as CFDs or commodities. However, understanding the specific market conditions and adapting the strategy accordingly is crucial.

What Can I Use as Entry Points and Stop-Losses?

Entry points and stop-losses are determined by your strategy and the indicators you use. Common entry points might be based on trend reversals or specific price action, while stop-losses protect your capital from significant downturns.

Is Scalping Suitable for All Traders?

Scalping is not suitable for all traders. It requires a high level of focus, quick decision-making, and an understanding of technical analysis. If these attributes align with your trading style, then scalping might be a suitable strategy for you.

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”