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One Minute Forex Trading Strategy

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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

  1. Chart Setup
    • Use 1-minute timeframe
    • Apply 9 EMA and 21 EMA
    • Add RSI (14) with levels 30 and 70
  2. Entry Signal (Buy)
    • 9 EMA crosses above 21 EMA (bullish crossover)
    • RSI is above 50 and rising
    • Price breaks above minor resistance
  3. Entry Signal (Sell)
    • 9 EMA crosses below 21 EMA (bearish crossover)
    • RSI is below 50 and falling
    • Price breaks below minor support
  4. Stop Loss
    • 5–10 pips below recent low (for buys)
    • 5–10 pips above recent high (for sells)
  5. Take Profit
    • Fixed at 10–20 pips
    • Or use a trailing stop for stronger trends
  6. 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

FeatureFundamental AnalysisTechnical Analysis
FocusEconomic news, interest ratesPrice action, indicators
Time HorizonLong-term shiftsIntraday to short-term trades
Tools UsedCPI, NFP, GDPEMA, RSI, MACD, candlesticks
StrengthSets macro contextIdentifies exact trade entries/exits
Best ForPosition/swing tradersScalpers, 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.

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