Forex 1 Min Scalping Strategy

The requirements for this strategy are as follows:
Instruments: every currency pair
Time frame: 1-minute
Indicators: Stochastic Oscillator (5, 3, 3) and two Exponential Moving Averages (EMA), 50 & 100
Preferred sessions: London and New York – high volatility
While you can use this Forex scalping strategy with any currency pair, it might be easier to use it with major currency pairs because they have the lowest available spreads. Additionally, this approach might be most effective during high volatility trading sessions, which are usually New York closing and London opening times.
Here’s a brief example of how the 1-minute scalping strategy works in action, using the indicators above as 1 min scalping indicators:
Set your chart time frame to one minute. Now make sure these two 1 min scalping indicators are applied to your chart:
EMA with periods of 50 and 100 (blue and green respectively in the chart below)
Stochastic Oscillator with periods of 5, 3 and 3
Buy (Long) Entry Point
Now you have applied the indicators to your chart, you need to wait for an entry signal. For a buy signal, the 50-EMA (blue) must be positioned above the 100-EMA (green). When this has occurred, it is essential to wait until the price comes back to the EMAs. Furthermore, the Stochastic Oscillator needs to cross over the 20 level from below. When all three are occurring, you can open a long position.
In summary, the signal for long orders is:
Any time the 50-EMA indicator surpasses the 100-EMA indicator, be ready to open a long order.
If the price at which you plan to fill the order is close to the EMA indicators, and the Stochastic rises above the 20 level, open a long position.
To minimise your risk, you can also place a stop-loss at 2-3 pips below the last low point of a particular swing. As the Fores 1 min scalping strategy is a short-term one, it is generally expected that you will gain between 8-12 pips on a trade. Hence the take-profits are best to remain within 8-12 pips from the entry price.
Sell (Short) Entry Point
To make a short trade, the 50-EMA (blue) should be positioned below the second 100-EMA (green). As with the buy entry points, we wait until the price returns to the EMAs. Additionally, the Stochastic Oscillator is must be crossing below the 80 level from above. As soon as all the items are in place, you may open a short or sell order without any hesitation.
In summary, the signal for a short order is:
To determine when to make a short order, use the same buy strategy indicators in reverse.
The 50-EMA indicator should be below 100-EMA, and the price should be close to these lines.
The Stochastic should fall below the 80 level.
Again, stop-losses are positioned near 2-3 pips above the last high point of the swing accordingly, and take-profits should remain within 8-12 pips from the entry price.
The Pros and Cons of the Forex 1 Min Scalping Strategy
To determine whether the Forex 1 min scalping strategy may prove useful for your style of trading, we will take a look at the advantages and disadvantages of the strategy.
Advantages:
Less risk exposure. Brief exposure to the market reduces the possibility of running into unforeseen, adverse events.
Relatively small movements are easier to achieve. A larger supply and demand imbalance is required to ensure bigger price changes.
The main logic behind scalping is that smaller moves occur far more frequently than larger ones.
Even when the markets are comparatively quiet, a good Forex scalper can still utilise many small moves.
Disadvantages:
A large deposit is needed.
Bankers and dealers have a certain advantage over amateur scalpers as they possess more information about the market.
A 1-minute scalper requires quick reflexes, good instincts, and mathematical skills.
It can be difficult to follow a Forex scalping strategy and maintain a good risk to reward ratio. For instance, with a ratio of 2:1, your take-profit at 10 pips requires a stop-loss at 5 pips, making it too close not to get stopped out in the majority of cases.
1-minute scalping is time-consuming and may lead to stress.
It all depends on the individual in question. You have to see for yourself whether this is a strategy that would suit your individual preferences.