If you like fast-moving market movements and you want to enter and exit the market as quickly as possible, then this 1-minute scalping strategy may be of great interest to you. Instead of waiting days to be able to find a potential trade on a daily chart, Forex scalping allows you to make several transactions in one day whenever the strategy gives you a buy or sell signal. Additionally, all transactions are closed at the end of the trading day, which means you have no risk of holding transactions overnight and you will be able to calculate your net profit or loss precisely at the end of each trading day. There’s also another reason to use scalping. It actually works great with high leverage as well. Therefore, you might want to go to http://www.cnie.org/highleverage/forex-scalping-high-leverage.html to find high leverage brokers that allow scalping.
This profitable scalping technique is based on the principle of trend following and trend reversing, combined with market overbought/oversold conditions. While this may sound complicated at first, I guarantee it is not.
In general, we want to make transactions based on buying or selling momentum in the 1-minute time frame, with additional confirmation using a pullback (the part that means reversing). To do this, we need to use some technical indicators which will generate trading signals for us.
There are some tools you need for scalping Forex on 1-minute charts. For this strategy to work, we will use the following profitable scalping indicators:
1. Two exponential moving averages: 50 period EMA and 100 periods EMA.
2. Stochastic Oscillator with period settings (5, 3, 3).
Apart from the two accurate scalping indicators above, you also need to pay attention to the market hours while you are trading. This strategy works best during volatile and liquid forex market hours, such as the New York – London overlap. Trading during these hours ensures sufficient volatility to generate profits and lowers trading transaction costs as liquidity increases.