One hour forex trading strategy is a popular approach among swing and intraday traders who prefer structured decision-making with less market noise than lower timeframes. The 1-hour chart offers a balance between trading frequency and signal reliability, making it suitable for traders seeking consistent performance without needing to monitor charts all day.

This article outlines a powerful one-hour forex trading strategy, including tools, indicators, rules, a real-world case study, and a breakdown of how to implement it with discipline.

Key Takeaways

• The one-hour strategy offers reliable trade signals with less chart noise.
• Ideal for intraday and short-term swing traders.
• Combines trend confirmation, momentum filters, and strict risk controls.
• Works best during the London and New York sessions.

Best Currency Pairs for 1-Hour Trading

• EUR/USD
• GBP/USD
• USD/JPY
• EUR/JPY
• GBP/JPY
• USD/CAD

These pairs are highly liquid and tend to follow technical patterns reliably, especially during overlapping sessions.

Core Indicators for the One Hour Forex Strategy

Indicator	Purpose
20 EMA & 50 EMA	Determine trend direction and crossover entry
RSI (14)	Filter overbought/oversold conditions
MACD (12,26,9)	Confirm momentum and entry strength
ATR (14)	Define stop-loss and volatility context

One Hour Forex Strategy: Rules and Setup

Step 1: Setup Your Chart

• Timeframe: 1 Hour (H1)
• Indicators: 20 EMA, 50 EMA, RSI (14), MACD (12,26,9), ATR (14)

Step 2: Entry Rules

• Buy Entry:
  • 20 EMA crosses above 50 EMA (trend confirmation).
  • RSI is above 50 but not overbought (i.e. under 70).
  • MACD line crosses above signal line.
• Sell Entry:
  • 20 EMA crosses below 50 EMA.
  • RSI is below 50 but not oversold (i.e. above 30).
  • MACD line crosses below signal line.

Step 3: Stop Loss and Take Profit

• Use ATR to determine stop loss:
  • SL = 1.5 × ATR from entry.
• Set TP at 2 × SL for a minimum 1:2 risk-to-reward ratio.
• Alternatively, exit at next key support/resistance level.

Step 4: Trade Management

• Limit trades to 2–3 per pair per day.
• Only trade during active sessions (London, New York).
• Avoid trading during high-impact news unless you’re experienced.

Case Study: Applying the One-Hour Strategy

Liam, an intermediate trader from Leeds, started applying this one-hour strategy after completing a structured Forex Course. Trading EUR/USD during the London session, he used EMA crossovers and RSI confirmation to identify high-probability setups. Over six weeks, Liam achieved a 62% win rate and improved his average risk-to-reward ratio to 1:2.3, resulting in consistent monthly returns with reduced trading anxiety.

Advantages and Disadvantages

Pros	Cons
Clear, structured signals	Fewer trades per session
Less noise than lower timeframes	Trades may take hours to complete
Easy to manage risk and avoid overtrading	Requires patience for signal development
Suitable for part-time and full-time traders	Impacted by major news or unexpected volatility

Frequently Asked Questions

Is the 1-hour forex trading strategy good for beginners?

Yes, it provides a balance of clarity, trade frequency, and manageable risk—ideal for structured learning and practice.

How many trades can I take per day with this strategy?

2 to 5 high-quality setups depending on the number of pairs you monitor.

What session works best for 1-hour trading?

London and New York sessions offer the best liquidity and volatility for the 1-hour timeframe.

Can this strategy be automated?

Yes, platforms like MetaTrader and cTrader support expert advisor automation based on these conditions.

How long should I backtest this strategy before going live?

At least 50–100 trades across multiple pairs and market conditions to verify consistency.