Forex scalping in 1 min time frame? | Forex Factory

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Forex scalping in 1 min time frame?

  • #1
  • First Post: May 24, 2009 1:58pm May 24, 2009 1:58pm
Sorry for my noob question. I have a scalping system with target profit 10 pips.

Is it possible to scalp for 10 pips profit considering both long and short spread from broker?.

If it is not possible/very hard to do than what is the shortest time frame that is tradeable, 5 mins?

Lastly, my broker is thinkorswim.com do you guys think TOS have competitive spread ?

Many thanks
Life Is Good
  • #2
  • Mar 27, 2011 9:50pm Mar 27, 2011 9:50pm
You need to do that analysis yourself. It is my belief that others will be reluctant to give you information which was the result of their own analytical endevours.

FWIW, good luck 'scalping' on that timeframe. Traditionally, such opportunities present themselves at the lower time levels, so I think you will not find much.

Just my 2 cents....

All the best.
  • #3
  • Mar 27, 2011 10:35pm Mar 27, 2011 10:35pm
The cost of scalping 1min will eat you alive unless you can push over 50mil in volume don't even think about it.
ok Friendo? This is madness!?!? - THIS, IS, FOREX!!!
  • #4
  • Mar 27, 2011 11:37pm Mar 27, 2011 11:37pm
Yes it can be done. Every timeframe has people that sya the next lower timeframe is noise and can't be traded. There are people that trade 10 secs. However you need to know exactly what you're doing to do that successfully.
  • #5
  • Apr 11, 2011 8:17am Apr 11, 2011 8:17am
Disclaimer: I'm still learning to trade, but:

I've been getting an excellent success rate from trading trends in the 5 minute chart, using the 1 minute chart, which is sanity checked via the 15 minute chart.

I used to trade the 1 minute chart only, it was a bloddy experience. From all those months though, i'm inclined to look to the shorter timeframes which i effectively trade, but the price formations on the longer timeframes keep me out of trades in the 5/1 min charts that used to loose pips.

Having the 1, 5 and 15 min charts up (all with the same indicators) and trading the 5 and 1 minute chart, at the same time is proving a happy setup for me.

From having moved from 1 to 5 minute practice, the main difference seems to be you actually have time to think about the trade.. 1 minute charts was more reactive rather than proactive, especially when the market is more volatile.
  • #6
  • Apr 11, 2011 3:47pm Apr 11, 2011 3:47pm
Quoting stockmarcus
From having moved from 1 to 5 minute practice, the main difference seems to be you actually have time to think about the trade.. 1 minute charts was more reactive rather than proactive, especially when the market is more volatile.
I demo simulator the 1'TF only.
You just look at more bars to get the answer from 1' TF. I used to have your 'reactive' problem, too, for years, until I dramatically increased the minimum/average #pips to trade for. Such a distanced, larger view really pays off, even if the market is moving really fast.
(Of course, now I have other problems; got rid of one...)
  • #7
  • Apr 13, 2011 11:09pm Apr 13, 2011 11:09pm
Quoting cowcool
Sorry for my noob question. I have a scalping system with target profit 10 pips.

Is it possible to scalp for 10 pips profit considering both long and short spread from broker?.

If it is not possible/very hard to do than what is the shortest time frame that is tradeable, 5 mins?

Lastly, my broker is thinkorswim.com do you guys think TOS have competitive spread ?

Many thanks
it doesnt matter what time frame it is
  • #8
  • Mar 5, 2012 12:51pm Mar 5, 2012 12:51pm
I have been trading on the 1 min charts for 4 weeks now. My target is to scalp 10 to 20 pips, minimum is 5. However before i start my trading, every morning i have a routine to analyze all the currency pairs, using technicaly analysis, i know which is the strongest and weakest currency, so if i was to buy a strong currency against a weak currency, this will give me an edge.

On the 1 min time frame, there is a lot of noise, so i have my stop loss at 100 pips, and scalp 10 to 20 pips each time, so far my stop loss has not been hit.

lets see how it works.

Disclaimer: I am a trainee forex trader and still learning every day.
  • #9
  • Mar 5, 2012 1:22pm Mar 5, 2012 1:22pm
Quoting Mr Alum
I have been trading on the 1 min charts for 4 weeks now. My target is to scalp 10 to 20 pips, minimum is 5. However before i start my trading, every morning i have a routine to analyze all the currency pairs, using technicaly analysis, i know which is the strongest and weakest currency, so if i was to buy a strong currency against a weak currency, this will give me an edge.

On the 1 min time frame, there is a lot of noise, so i have my stop loss at 100 pips, and scalp 10 to 20 pips each time, so far my stop loss has not been hit.

lets see...
I think for scalping 10 pips you can use 1-5 minute chart
I use that But I take position in direction of trend always and watch SPX,USDOLLAR trend chart for 4 hr or 1 hr to take this position as it gives me the direction of real money.
If I trade AUD/USD I do check AS200(stock market) to see large trend reversal.
Also, I trade when pair already decided on direction suppose EUR/USD is at 1.2980 and USDollar 9880 SPX 1380
There is high chance EUR will hit 1.300 to take stops and rest market also moves than I put this trade for 20 pips for stop of 30 pips
Also, end of day SPX500 is down ASIA will open down short AUDUSD around 3:30 if direction is confirmed for good 10-20 pips

WOW so much of work for 10 pips , Yes it is if you want to be consistent
There are so many pairs so 10 pips in not difficult on a pair. you don't have choose same pair. see momentum etc

Yes Homework is important, Keep an eye of hawk and be patient,discpline
Don't catch

Thanks
Kaps
  • #10
  • Mar 5, 2012 1:41pm Mar 5, 2012 1:41pm
Trading in the trend direction would happen, automatically if you buy a strong currency againt a weak currency.

I have attached a jpg of a spread sheet, showing you green, the strong currency pairs and red the weak currency.

Then you match strong against weak, to get your trading edge.

The analysis is simple. eg Eur Usd on a 4 hour time frame, 200 ema

If price is above the eur, then up for euro and down for usd.
Attached Image (click to enlarge)
Click to Enlarge Name: 05march.JPG Size: 474 KB
  • #11
  • Mar 6, 2012 11:44am Mar 6, 2012 11:44am
Do what you will, as a rookie trader, but you are 99% likely to fail at 1M scalping for reasons which are peppered ALL over this board. Instead of gambling for the rush at 10 pips a pop, it is a LOT easier to trade a basket of 4 to 5 pairs on a 1HR chart and look for between 50-100 pips per pair. Plus you won't lose your hair....or your account, unless your RR is ridiculous, as most every rookie's is.
There's always money in the banana stand.
  • #12
  • Mar 7, 2012 1:31am Mar 7, 2012 1:31am
Welcome to the shorter timeframes Mr Alum.

Don't let the nay sayers about short term trading get you down. The larger timeframes move relatively glacially to the 1 min's, which can result in more reliable trades, BUT there is a huge trade off, when your entry isn't exacty at the beginning of the trend, your stop loss is going to have to be much much greater than on the shorter timeframes.

Having said, with a similar attitude to yourself, i've found strictly trading on the 1 min charts as over time unworkable, or the better answer is, the days on which scalping up the 1 min chart by itself is stable and profitable are quite rare these days.

Having said.. learn what you can from them. The 1 min charts are a great (if often brutal) teacher of the meaning of MOMENTUM, which you need to have a very strong appreciation of for shorter term trading.

Also, id also throw a massive contrary to some views.. do NOT trade a live account on short timeframes until you can make your demo account increase in value for at least a month straight. Death by a million cuts is, well, the same as a death by one or two massive blows. But can happen quicker trading shorter charts.

With an attiutude towards shorter term trading, i use 1 mins, 5 mins and hourly charts in concert.. with the trend's im looking to catch on the 5 min charts (consider volatility here), and respecting support and resistance on the hourly charts.

Oh yeah, keep in mind that Support and Resistance levels are what you MUST focus on with short term trades. You're not trading fundamentals at these time frames (does any currency trader who isn't an institution -really- trade fundamentals? i dont know.)

Good luck!

Also.. no comment here about the relative difficulty of the activity.. generally as you go up in timeframe.. things get easier... but having your timeframe low enough can have great rewards also
  • #13
  • Mar 7, 2012 7:07am Mar 7, 2012 7:07am
Scalping on the M1 is as easy as taking a walk in the park.

It is the constant rubbish used in marketing ads from brokers and alike that make people think one needs to trade higher TFs and more pairs at the same time.

NOT TRUE !!!!!

I scalp on the M1, ONLY EU and am making an easy living with it.

ALL a matter of having the correct tools to do it.
  • #14
  • Mar 12, 2012 2:57pm Mar 12, 2012 2:57pm
Quoting stockmarcus
Welcome to the shorter timeframes Mr Alum.

Don't let the nay sayers about short term trading get you down. The larger timeframes move relatively glacially to the 1 min's, which can result in more reliable trades, BUT there is a huge trade off, when your entry isn't exacty at the beginning of the trend, your stop loss is going to have to be much much greater than on the shorter timeframes.

Having said, with a similar attitude to yourself, i've found strictly trading on the 1 min charts as over time unworkable, or the better answer is, the days...
Hello Stockmarcus

Momentum is the key, knowing what currency is strong and weak will give you the edge. As an example today i did my analysis and had CAD as a strong currency pair and jpy as a weak currency pair. If i then opened up the cad/jpy ccy, i would look for opportunities to buy using my custom made professional indicator, which tells me levels of resistance, support and a lot of clever stuff.

This would have worked excellently today, if i entered cad jpy buy, and had a stop loss of 100 pips, with each entry scalping 15 to 20 pips. This is good trading. In truth it takes 3 months of data to review a m1 strategy, and that should be the minimum amount.

I am lucky to have had a professional education from london city traders, who mentor me every day and every morning, it is like a remote trading floor, so i can always get help from them to refine my approuch. Most people takes years to refine their startegy, i think i am doing very good, trading for 6 months now.

I do trade larger time frame, but i usually trade, trend line bounces for larger time frames.

I will post a picture of me trading a larger time frame.

I trade trendline bounces, and trying to refine my m1 startegy.
Attached Image (click to enlarge)
Click to Enlarge Name: USDCAD TrendlineV4.png Size: 56 KB
  • #15
  • Mar 12, 2012 3:35pm Mar 12, 2012 3:35pm
Quoting Freddyfx
Scalping on the M1 is as easy as taking a walk in the park.

It is the constant rubbish used in marketing ads from brokers and alike that make people think one needs to trade higher TFs and more pairs at the same time.

NOT TRUE !!!!!

I scalp on the M1, ONLY EU and am making an easy living with it.

ALL a matter of having the correct tools to do it.

Been trading forex for 2 years, live for one year. Just now starting to break even and make a bit on 1 minute and 30 sec charts. Have always traded these TF'S since I started. Have tried other TF'S all the way up to dailies, always go back to short TF'S. If I can keep from trading what I call "out of system" trades 3-4 times a week, I am confident my profits will take off.
  • #16
  • Mar 12, 2012 6:23pm Mar 12, 2012 6:23pm
Quoting Salestrainer
Been trading forex for 2 years, live for one year. Just now starting to break even and make a bit on 1 minute and 30 sec charts. Have always traded these TF'S since I started. Have tried other TF'S all the way up to dailies, always go back to short TF'S. If I can keep from trading what I call "out of system" trades 3-4 times a week, I am confident my profits will take off.
2 Years is a long time, how did you learn how to trade? and how long do you think it took to figure it out?
  • #17
  • Mar 13, 2012 1:57am Mar 13, 2012 1:57am
Hey Mr Alum,

Without knowing your method, i can't fully say, but on the 1 min charts, a stop loss of 100 pips sounds overly large.

Depends on the volatility of your pair on the day of course, but say i was trading the 1 min charts primarily.. i'd be shocked if i let a trade go 10 pips into loss. As in, the patterns on the up/down swings on the 1 min chart would indicate i got into a bad entry, or made an operational mistake, for the price to go 10 pips against me.

That is a ridiculuously small stop of course, but the 1 min's are (relatively) a ridiculuously quick timeframe also.

If you are allowing such large stops, i can see how you could look to the 1 min timeframe to see these trends and movements, but it may help to jump up one or two timeframes to have a look at the same trend you've got in mind on the longer charts. A slightly higher timeframe does a good job of weeding out consolidation osciallations that are very prominent (and easily distracting) on the 1 min chart, but not on the higher ones. If you're going for the larger trends, eg, intra day swings, and are using a direction bias based on fundamental data with strong and weak pairs, the higher timeframes help to focus on those movements, rather than the frothy short term volatility.

In your case i'd find it interesting though.. as do you have an idea about WHEN during the day the imblances will start trading through? Maybe that could tighten things up for you.

Course the contrary is, if you are planning on trading those short term movements more let the price be your guide.
  • #18
  • Mar 13, 2012 12:08pm Mar 13, 2012 12:08pm
Quoting Mr Alum
2 Years is a long time, how did you learn how to trade? and how long do you think it took to figure it out?
I am just now getting it figured out, lol. I am up this month about 3.5 % after a horrific start, every time I start rolling I take an impulse trade. Still trying to figure out how to trade stress free and get more coinsistent. I follow similar trading set-ups as the J16 group, just on a compressed time frame with the trend.
  • #19
  • Mar 13, 2012 4:52pm Mar 13, 2012 4:52pm
1 makes the 5, 5 makes the 15 etc etc.. Therefore short term momentum should always come first when entering a position. Does not matter whether this position is long term or simply a scalp.

Below is a picture of the setup I currently use and which works excellent for me. Its a fully zoomed out 5M chart with HA replacement(so no MA formula accounted within these candles).

With this setup I'm able to view 4 to 5 whole days on a 5M chart. Talking about overview! Stratman minichart(bot right corner) is a nice tool for a more clear view of recent 5M PA.

A 1M MTF chart is on top of the 5M. Call it a messy chart, I call it efficient as the other way around would be a separate 1M chart for all pairs that I trade.

1M is used for momentum/underlying price action. Clusters on the 5M can be identified as small ascending/descending wedges etc on the 1M chart. When these clusters take place on important confluence areas ( think about fib+hori S/R+diag TL coming together ) we can place the most tight SL's possible while still managing nice rewards(<- especially if you cut your position into 3rd's and let 1/3 run but I leave MM / PM to yourself)

http://img252.imageshack.us/img252/391/15307677.gif
  • #20
  • Last Post: Mar 13, 2012 8:04pm Mar 13, 2012 8:04pm
Glad to see I am not alone scalping smaller time frames. As I said, I trade 1 m, 30sec cadlestick patterns using bollinger bands and 1 EMA. Had a good day today, had 2 2% runners, 1 BE, and 1 1% loser. I am using 5 pip stop loss, however in many cases snug it up tighter after entering trade. Use trailing stops to take profit after BE is reached. I usually trade from about 5-7am central time daily. Today I was off my day job so I traded until Euro session closed. Seems after Euro session closes, not enought movement for my system, also do not trade Asian session, too slow. Best time is when Euro -NY session overlap. Anyone who wants to compare notes, feel free. I do trade a live account, not demo.
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