Traders always look for ways to enhance their trading tactics. They apply different strategies that can help them seal the deal.
One of the most popular strategies among the trading community is scalping.
Scalping is like an action packed movie where thereās too much action. You enter and exit the trade in a blink of an eye.
What is a 1-minute scalping trading method?
The 1-minute scalping method in crypto entails starting a trade, gaining a few pips, and closing the position. Because you only make a few pips for every trade, selecting a broker or a prop firm with the shortest spreads and lowest costs is critical.
As a result, volume is a crucial part ofcrypto scalping, and traders frequently place more than 100 trades every day.
The fundamental goal of such methods is to use trade volumes rather than complicated technical analysis.
This one-minute scalping approach is relatively simple to master and can be extremely rewarding when utilized correctly.
Which indicators to use for the 1-minute scalping method?
Indicators are an important part oftechnical analysis. Because of the action-packed nature of scalping, you have to use indicators that can help you identify entry and exit points.
You can use every indicator with the scalping strategy, but the ones we prefer are:
SMA
The Simple Moving Average (SMA) is the fundamental indicator that traders use to build a trading strategy. It displays the average price of a traderās deals over a specified period.
Essentially, it assists traders in determining if the cost of their stocks, commodities, foreign exchange, and so on is rising or falling, allowing them to discover a trend.
EMA
Another valuable indicator is the ExponentialMoving Average, allowing traders to further weightage recent prices. Because it responds faster to recent price changes than historical price movements, the EMA indicator is one of the best scalping indicators.
Traders use this technical indicator to generate buying and selling recommendations based on historical average crossings and divergences.
MACD
MACD is another popular indicator used by traders.The MACDscalping indicator is calculated by subtracting the 26-day EMA (exponential moving average) from the 12-day EMA. The 9-day EMA serves as the MACD default setting or signal line to highlight buy and sell signals.
Stochastic Oscillator
Another popular indicator is theStochastic Oscillator, generally known as a momentum indicator. It is based on the basic principle that momentum precedes price.
As a result, traders employ this scalping indicator to acquire alerts of natural movement before it occurs. The indicator also states that the price of an asset is either overbought or oversold. Using it on a 1-minute timeframe indicates whether the price is going to halt the ongoing trend in the next few minutes.
1-minute scalping trading strategy
Now that you know what a 1-minute scalping strategy is and what are some of the indicators you can use, letās illustrate how you can enter long and short positions.
The indicators we are using for this strategy are 50 and 100 EMAs and Stochastic.
How to enter a long position?
Let us now concentrate on entering a long position on the strategy. In a scalping strategy, a buy position must match the following criteria:
To establish a buy position, we must wait for the 50 EMA (Exponential Moving Average) to cross above the 100 EMA. Second, we must wait for the price to return to the EMAs. Finally, the Stochastic must be above 20.
If all three of these statements are satisfied, we can enter long.
You can set the take-profit level 8-12 pips high from your entry point. You can place the stop-loss below the recent swing low.
How to enter a short position?
The following events must occur to enter a short position:
The 50 EMA must be lower than the 100 EMA. Before going short, the Stochastic Oscillator must fall below 80.
The appropriate take-profit level is 8-12 pips from your entry point. You can place the stop-loss near the recent high.
Pros and Cons of 1-minute scalping method
To evaluate forex 1-minute scalping, we will examine the benefits and drawbacks of scalping.
Pros
The outcomes of the 1-minute strategy are visible after just 1 minute, and thus after such a short time, you may know if you won to progress or you lost to strategize forrecoveryof your loss.
A large number of tradesā using the 1-minute technique allows you to conduct many deals in a single day.
The primary reason for scalping is that tiny moves occur far more frequently than bigger ones.
Cons
Traders take advantage of amateur scalpers because they understand the market better.
A one-minute scalp needs quick reactions.
Scalping for one minute might bestressful.
1-Minute Scalping Summary
š¹ļø Scalping is one of the most successful trading methods available; nevertheless, you must maintain a high win rate to guarantee that the approach is fruitful and profitable.
