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One Minute Forex Trading Strategy
A one minute forex trading strategy is a fast-paced, high-frequency method that allows traders to enter and exit positions within minutes—sometimes seconds. Ideal for scalpers and short-term traders, this strategy relies on rapid technical analysis, tight spreads, and precise execution. It can be highly profitable but also demands strict discipline, low-latency platforms, and strong risk control.
What This Guide Covers:
- Core elements of a 1-minute trading strategy
- Indicators and tools used for scalping
- Best currency pairs and session timings
- Real-world example using the strategy
- FAQs with structured schema markup
Key Takeaways
- The 1-minute forex strategy focuses on quick trades during high-volatility periods
- Requires fast execution, tight spreads, and reliable indicators
- Best suited to major pairs like EUR/USD, GBP/USD, and USD/JPY
- Effective during London and New York overlaps
- Strong risk management is essential due to frequent trades
What Is a One Minute Forex Trading Strategy?
This strategy involves analysing price action and technical indicators on a 1-minute chart, aiming to capture small pip movements multiple times a day. Trades typically last between 1 and 5 minutes and rely on momentum, breakouts, and micro-trends.
The goal is to:
- Enter positions quickly based on clear signals
- Exit with small, frequent gains
- Maintain tight stop-losses to limit risk
Ideal Currency Pairs and Market Sessions
For best results, use pairs with low spreads and high liquidity:
- EUR/USD
- GBP/USD
- USD/JPY
Trade during these high-volume sessions:
- London (08:00–11:00 GMT)
- New York (13:00–17:00 GMT)
- London–New York Overlap (13:00–16:00 GMT)
These periods offer the best volatility and fast execution.
Best Indicators for the 1-Minute Chart
A solid one-minute strategy often combines momentum and trend indicators:
- EMA (Exponential Moving Averages): 9 EMA and 21 EMA to identify short-term trend direction
- RSI (Relative Strength Index): Set to 14, identifies overbought or oversold conditions
- MACD (Optional): Confirms momentum divergence and entry confirmation
- Support/Resistance Lines: Drawn manually to detect bounce or breakout zones
Step-By-Step One Minute Trading Setup
- Chart Setup
- Use 1-minute timeframe
- Apply 9 EMA and 21 EMA
- Add RSI (14) with levels 30 and 70
- Entry Signal (Buy)
- 9 EMA crosses above 21 EMA (bullish crossover)
- RSI is above 50 and rising
- Price breaks above minor resistance
- Entry Signal (Sell)
- 9 EMA crosses below 21 EMA (bearish crossover)
- RSI is below 50 and falling
- Price breaks below minor support
- Stop Loss
- 5–10 pips below recent low (for buys)
- 5–10 pips above recent high (for sells)
- Take Profit
- Fixed at 10–20 pips
- Or use a trailing stop for stronger trends
- Risk Management
- Risk only 1% of your capital per trade
- Avoid overtrading—limit to 5–10 trades per session
Case Study: 1-Minute Scalping Success
Sam, a Traders MBA student from Dubai, began testing the 1-minute EMA crossover system on a demo account. He traded GBP/USD during the London session with the following rules:
- Entry on EMA crossover confirmation
- RSI above 50 or below 50 for bias
- Fixed 10-pip stop-loss and 15-pip target
After 2 months of demo practice, Sam moved to a live $2,000 account. By sticking to his rules, he averaged 5–8 winning trades per day with a 70% success rate, gradually compounding small daily profits into consistent growth.
His edge came from:
- Precision timing
- Limiting exposure
- Following the system with discipline
Fundamental vs Technical Analysis
Feature | Fundamental Analysis | Technical Analysis |
---|---|---|
Focus | Economic news, interest rates | Price action, indicators |
Time Horizon | Long-term shifts | Intraday to short-term trades |
Tools Used | CPI, NFP, GDP | EMA, RSI, MACD, candlesticks |
Strength | Sets macro context | Identifies exact trade entries/exits |
Best For | Position/swing traders | Scalpers, day traders |
Frequently Asked Questions
What is a one minute forex trading strategy?
It’s a fast-paced trading method that uses 1-minute charts to execute multiple trades per session based on quick signals and tight risk controls.
Is the 1-minute strategy suitable for beginners?
No, it’s better for intermediate traders due to the speed and precision required. Beginners should start with longer timeframes.
How much capital do I need for 1-minute forex trading?
You can start with $500–$1,000 using micro or mini lots, but a $2,000 account offers more flexibility for risk control.
Which broker is best for 1-minute forex trading?
Choose brokers with tight spreads, fast execution, and no dealing desk interference. Look for ECN or STP brokers.
How many trades should I take per day with this strategy?
Aim for 5–10 high-quality trades per session. Avoid overtrading, which can increase emotional risk.