It goes without saying that trading on a one minute chart is only viable if you are in and out of a position quickly. Over the next few months I’ll forex scalping strategy that you must follow before can lead posting up some systems which I’ve used, or have read about in various places during my time as a trader.
First up is this fast one minute scalping system which can be used for trading stocks, futures or Forex. To get the best out of any one minute trading system you either have to have a trading account which allows you direct access to the market, or broker with a fast execution platform and super tight spreads. The term less is more has never been more relevant when it’s applied to a one minute scalping system. For this chart set up all you need is standard Bollinger bands and a 100 period exponential moving average.
Firstly you need to create a rule to determine direction. Our rule here is determined by the 100 moving average. For a buy signal both the upper Bollinger band and the middle moving average of the Bollinger band must be above the 100 exponential moving average. For a stronger buy signal all three of the Bollinger bands should be above the 100 exponential average.
For a sell signal both the lower Bollinger band and the middle moving average of the Bollinger band must be below the 100 exponential moving average. For a stronger sell signal all three of the Bollinger bands should be below the 100 exponential average. Practice makes perfect There are things to look for which will become very apparent as you trade this in real time yourself. Make sure you test out this system on a demo account before you trade it for real, and make sure you get a feel for when the best trades might come.
One of the things you might want to look for are the tightening of the Bollinger bands after a change in direction, often a small impulsive push comes right afterwards. The entry signal Once you have determined if the price is in buy or sell mode you will then be looking to enter a trade. This system takes trades in the direction of the Bollinger bands into the extremes. So for instance on the chart below, buying mode has been established because both the upper Bollinger band and the middle Bollinger average are above the 100 exponential moving average.