Scalping strategy requires that you stay watching the market charts as long as you are trading. When you open a trade you don’t leave the trade to run for a long duration of time.it is a matter of seconds and at most 15 minutes.
A professional scalper will at all times try as much as possible to minimise the duration of time his or her trade stays in the market. A profit closed is worth more than a running trade with profits. Sometime you may be watching the market and all of a sudden everything changes and the profits that you were enjoying to watch hopping to get more changes to losses. And in scalping whenever a trade shows that it is making a loss, it is best to close it and open another trade in order to reduce the risk of the loss growing to a huge figure.
The one minute scalper trading system is specifically used to trade using the one minute timeframe. With the one minute timeframe the trader is able to analyze the market trend of in every minute. Since the forex market prices especially those of the majors as too volatile the one minute timeframe is the best to trade with when scalping. This trading system is used mainly to trade the EUR/USD, AUD/USD and the GBP/USD currency pairs. If you are to choose any other currency pair, its spread should not exceed 15.
The 1 min scalper trading system is mainly based on the exponential moving averages. It uses two exponential Moving average indicators of different periods and the stochastic indicator.one of the Exponential moving average has a period of 50 while the other has twice that period – it has a period of 100. The stochastic indicator used is the stochastic (5,3,3).
Fig. showing the indicators the template of the 1 min scalper trading system uses.
By default one of the Exponential moving average is purple while the other is blue.
Trading using the 1 min scalper trading system
Placing buy orders:
Before opening a buy order you should check to see that the exponential moving average with the period of 50 is above or greater than the 100 EMA. Also wait to see that there is no a future retracement at any time soon by ensuring that the trade is at or close to the last retracement to its support level. Then wait for the stochastic oscillator to move below the level of 20. You should be careful to ensure you open your buy trade when the stochastic oscillator starts to rise but still below or at the level of 20.
Then the trader should place his or her stop loss at around 3 pips below the closest support level. Profit on the other hand, should be closed at least after the market moves by 7-12 pips.
Fig. showing when to open a and close a buy order with 1 min scalper trading.
Placing sell orders:
When opening a sell order you should check to see that the exponential moving average with the period of 50 is below or less than the 100 EMA. Also wait to see that there is no a future retracement at any time soon by ensuring that the trade is at or close to the last retracement to its resistance level. Then wait for the stochastic oscillator to move below the above the level of 80. You should be careful to ensure you open your buy trade when the stochastic oscillator starts to fall but still above or at the level of 80.
Then the trader should place his or her stop loss at around 3 pips above the closest resistance level. Profit on the other hand, should be closed at least after the market moves by 7-12 pips.
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