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1 min scalping: Your opinion and what to look for

  • #1
  • First Post: Jul 6, 2013 3:59am Jul 6, 2013 3:59am
Hello my friends,

after years of searching for a system that would be suitable for me i finally find it. It is the 1 min scalping.

Like many others out there I was against the 1 min scalping because i think it was too quick and noisy for me but after reading couple interesting posts from different forum participants (CP, Kostas, FTI... I would like to thank all of them) I slowly build my own view on the market and trading fx.

Why 1 min chart. If we belive in fractals then 1 min trading is the same as hourly, daily, weekly... it is just quicker and you catch smaller amount of pips. At the begining i had problems specialy with number of pips i was catching... because i thought it was too small. But then i ask myself what is more easyer to catch 2 times 10 pips or 10 times 2 pips. For me it is definately 10 x 2 pips.

Belive me there is always many many opportunities. If you observe 20 pips move you will see that inside this 20 pips move you could sometimes catch 30 to 40 pips with scalping. Yes i know that my broker would get a lot of money with such trading but who cares becuse i will make money too.

For me 1 min scalping is stresless. I know it is strange to hear that but belive me I am hunting three, four pips from a trade and i can get it in much more than 80% of time. Of course if there is a strenght in the market produced from influx or outflux i stay in the trade longer.

I find Moving averages extremly helpful. I use it in same way as choros dance but i like 150 EMA. Why? Read the thread: Another simple system - Time-Frame 15 and observe 10 EMA on 15 min. 10 EMA on15 min is 150 EMA on 1 min. And it works like sime kind of magnet. I also like to see where is price on 1h.

I would like to talk to you about your sistem on 1 min TF. What are you looking for and what do you think about 1 min tf trading.
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  • #2
  • Jul 6, 2013 7:35am Jul 6, 2013 7:35am
Well since my name was mentioned I need to say something....:nerd:

In my opinion, there is value in this kind of scalping. The M15 EMA 10 (or the equivalent M1 150) is a very important MA in the CHOROS technique and you will find that price typically reacts (bounces) at that point. So it is a wise choice in my opinion. One approach would be to wait for some small trend (say long for example) and then when price retraces back to the M1 150 wait for the price to bounce and enter long at the first green bar from after touching the M1 150).
Sometimes, I was also doing such scalping for 5-6 pips (2-3 pips is a too small target, unless you have a really low spread).

Hint: The higher the timeframe the stronger the reaction. Look at the attached picture from GU yesterday. The yellow arrows are bounces from EMA 150 and the red arrows are bounces from EMA 300 (which is H1 EMA 5).

Good luck with the thread my friend, I will be watching.....
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  • #3
  • Jul 6, 2013 8:19am Jul 6, 2013 8:19am
THX for your encourage words Kostas.

I also take some useful hints from another respectful trader, CrucialPoint. From his thread i got idea that market is moving because of influx and outflux. I was wondering how could we measure that if we know that mt4 platform are mostly running from OTC providers and that we cant see order books and so we dont have enough data.

When i see that entry is close on 1 min i also observe tick chart to see if thre is enough power. The size of candels, the frequency of buying selling ticks.... and when i see power i made my move.

I have also researched bolingers a lot in different ways lately. I am moslty interesting in bell curve and standard distribution. I was researching different settings... and still do. It would be interesting if someone could tell me more about this if it is possible to measure influx and outflux with bb.
  • #4
  • Jul 6, 2013 10:02am Jul 6, 2013 10:02am
I'd love to join the 1m trading club if I have:
(1) Spread less than 1.
(2) Execution/connectivity is guaranteed as if it is like a big bank trading room.
(3) brokers guarantee to pay the profit made from such a short term trading (even if they say "scalping is accepted," I'm very skeptical if they keep their words)
and
(4) a better trading platform than MT4 -- I doubt MT4 is good enough for 1m trading (latency and whatnots).
  • #5
  • Jul 6, 2013 10:35am Jul 6, 2013 10:35am
Quoting kostas1
Well since my name was mentioned I need to say something....:nerd: In my opinion, there is value in this kind of scalping. The M15 EMA 10 (or the equivalent M1 150) is a very important MA in the CHOROS technique and you will find that price typically reacts (bounces) at that point. So it is a wise choice in my opinion. One approach would be to wait for some small trend (say long for example) and then when price retraces back to the M1 150 wait for the price to bounce and enter long at the first green bar from after touching the M1 150). Sometimes,...

Can you share this template please?
  • #6
  • Jul 6, 2013 12:49pm Jul 6, 2013 12:49pm
Hello. I for one believe 100% in scalping. Although the firm which you use plays a major rule in your success. The reality is one should have very picky entries in order to end up on the right side of the scalp. If you have a look at my stats for last week of trading. I closed the week at over 115% profit Typically earning about 5 pips profit. Haven't not experienced 3 losses in a row.

As for the system I use. I only use 1m formations, with visual aides such as bollingerbands, to identify the crossing over of key prices. I'm also a big believer in a non-bias approach to scalping. If you simply willing to close your loss or even hedge it only to open the opposite trade right away. You will notice your % change increase dramatically.
  • #7
  • Jul 6, 2013 12:55pm Jul 6, 2013 12:55pm
I scalp, always have, always will. I firmly believe that predicting the market movement over the next 1-5 minutes is much simpler than the next 1-5 hours or especially the next 1-5 days. Not only that, but the results happen quicker (win or loss), and the trials per day are a lot greater to determine if you truly have an edge or not. For example, I get 4-10 trades per the 2 hours following New York open that I trade, in the Euro only. If I were trading the daily charts, I'd have maybe 4-10 trade opportunities per month/6 months/year - I don't really know, but the point for me was, far less opportunities on the higher time frame to prove to myself that I knew what I was doing.

Given the previous pros, there are several cons. I have never and would never scalp through MT4 - clunky entry and exit orders, slow execution times, and for the most part, poor spreads are impossible to overcome when your looking for 1.5 - 10 pips. I have always used ECN brokers, and I believe it to be a must for me. Second, there is less room for error. The whole point of scalping would be to have smaller stops, and thus more precise entries.

But yes, markets are fractal. The same patterns occur on every time frame, and in fact the 1 minute chart time frame can provide the entry signal given a certain pattern, and once in you can see that that pattern has now occurred on the 5 minute, so maybe you hold a little longer. Then you see that that same pattern has now occurred on the 30 minute time frame so you hold even longer. So theoretically, I have seen very good multi-time frame traders, turn scalp entries (with 4-7 pip stops) into multi-day swing trades for 100s of pips. I myself do not do this, but its possible. I like quick results, and not holding when I'm not in front of the computer.

But then again, that is my temperment. For others this would never work. So for the most part, I scalp from a tick chart with a 5 minute chart as my trend. I have additional setups that I bring in with the 1 minute chart (which I posted below just as an idea). I don't wait for confirmation on the entries (i.e. I trade levels not candle closes for the most part) which can lead to early entries at points, but I prefer it to late entries. However, - I do like the Babon system Favourite made up. That seems to work pretty well in the slower markets.

The number one thing that makes anyone successful though is trade management - as we all know and for some that is the harder part of the faster time frames. Oh and again, don't scalp through MT4!

Scalpers importance list, in order of most to least important (in my opinion):
1) Broker
2) Trade Management
3) Volume in the market - activity needs to be high to capitalize on the smaller moves
4) Patience and understanding
5) Entry methodology
Attached Image (click to enlarge)
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Small disciplines repeated with consistency lead to great achievements.
  • #8
  • Jul 6, 2013 1:01pm Jul 6, 2013 1:01pm
Quoting jmflukeiii
I scalp, always have, always will. I firmly believe that predicting the market movement over the next 1-5 minutes is much simpler than the next 1-5 hours or especially the next 1-5 days. Not only that, but the results happen quicker (win or loss), and the trials per day are a lot greater to determine if you truly have an edge or not. For example, I get 4-10 trades per the 2 hours following New York open that I trade, in the Euro only. If I were trading the daily charts, I'd have maybe 4-10 trade opportunities per month/6 months/year - I don't really...
The following picture which I've posted. Reveals an excellent scalp. Not only did I enter against the overall trend (which was down) Yet my order never closed in red. Although the position was closes early. The fact is once I close the position. I wait for an accumulation of the price before I re-enter a position.
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  • #9
  • Jul 6, 2013 1:21pm Jul 6, 2013 1:21pm
Quoting Master_kiwa
{quote} The following picture which I've posted. Reveals an excellent scalp. Not only did I enter against the overall trend (which was down) Yet my order never closed in red. Although the position was closes early. The fact is once I close the position. I wait for an accumulation of the price before I re-enter a position. {image}
Beautiful countertrend! The countertrend can give pips a lot quicker than with the trend a lot of the time, although most will tell you are crazy. Put the Sonic VSA volume on there and I bet there was a volume spike going into that last down candle - if so, I'd consider entering long at its close for an even earlier entry, with a similar risk (6 pips or so).
Small disciplines repeated with consistency lead to great achievements.
  • #10
  • Jul 6, 2013 1:23pm Jul 6, 2013 1:23pm
Quoting jmflukeiii
{quote} Beautiful countertrend! The countertrend can give pips a lot quicker than with the trend a lot of the time, although most will tell you are crazy. Put the Sonic VSA volume on there and I bet there was a volume spike going into that last down candle - if so, I'd consider entering long at its close for an even earlier entry, with a similar risk (6 pips or so).
Interesting about the Sonic VSA volume. Would you be able to share that indicator with me please?
  • #11
  • Jul 6, 2013 1:28pm Jul 6, 2013 1:28pm
I am in proces of researching BB on 1 min chart becuse my idea is that the money coming in starts volatility and that will first show on 1min. I see some other traders use it as S/R. Any opinon about this?
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  • #12
  • Jul 6, 2013 1:34pm Jul 6, 2013 1:34pm
Quoting ataata
I am in proces of researching BB on 1 min chart becuse my idea is that the money coming in starts volatility and that will first show on 1min. I see some other traders use it as S/R. Any opinon about this? {image}
Your theory is correct. Volatility will always show on the 1m first. Especially since you can see the engulfing of the candles which closes before the spike. As for the bbands you can pick which ever one you like. MA 34 or period 34 on the bbands works well. Typically when you enter on a MA 34 HIGH/LOW CROSS your entry isn't going to close you in green once you've entered into profit more then 6 pips.

I on the other hand look for smaller pip profits, as I'm using 20 dollars per lot. Most cases I close the candle in which I entered in green. Which allows me to keep going on to the next candle. Yet Bbands gives me the visual aid I need, as the formations are typically much easier to recognize.

Here are one of the formations which I wager a lot on. You can see the trend was up. With accumulation towards the high of the move. In this case the currency ended up dropping. Yet in most cases the next move results in an up move. Yet, their is only one small difference in identifying if the next move would be up or down. That would be a re-close under the first lower bbands low.
Attached Image
  • #13
  • Jul 6, 2013 1:38pm Jul 6, 2013 1:38pm
Quoting Master_kiwa
{quote} Interesting about the Sonic VSA volume. Would you be able to share that indicator with me please?
I think this is it. You will find more about it on Sonic R.System thread
Attached File(s)
File Type: mq4 SonicR VSA (Black).mq4   13 KB | 768 downloads
  • #14
  • Jul 6, 2013 1:39pm Jul 6, 2013 1:39pm
Here is the same chart which I posted above. Yet, you can see the first blue box labels the first bband lower line touch. Then noticed how once we closed under the lower band several mins later. The price would then bounce off the middle band, then break the floor. Now simply go back and back test this same formation. You'll see the only difference between it moving up and down is the opposing band being touched, then closed across.
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  • #15
  • Jul 6, 2013 1:42pm Jul 6, 2013 1:42pm
Here is the same formation. Yet a breakout to the upside. Do you see how the first low of the bband was never closed under. Yet the high of the move up was broken, which then resulted in another breakout up!
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  • #16
  • Jul 6, 2013 1:45pm Jul 6, 2013 1:45pm
Quoting ataata
{quote} I think this is it. You will find more about it on Sonic R.System thread {file}
Thank you so much.
  • #17
  • Jul 6, 2013 2:01pm Jul 6, 2013 2:01pm
Quoting Master_kiwa
Here is the same formation. Yet a breakout to the upside. Do you see how the first low of the bband was never closed under. Yet the high of the move up was broken, which then resulted in another breakout up! {image}
And as I can see this usually happen in squeez period of Bolinger bands.
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  • #18
  • Jul 6, 2013 2:15pm Jul 6, 2013 2:15pm
Quoting ataata
{quote} And as I can see this usually happen in squeez period of Bolinger bands. {image}
Nice find. Within a trading session you will see that formation 8-10 times. The reason I don't trade higher TF is for the same formation which we are looking at. Any sort of accumulation is meerly the markets way of balancing order flow. So this way they can profit more on the next move. Which would mean that Higher TF doesn't factor in to the waves we see on the 1m chart. Not to mention, prices tend to accumulate at daily pivot lines. Which of course won't factor in when you look at a higher tf.
  • #19
  • Jul 6, 2013 2:26pm Jul 6, 2013 2:26pm
My trading system is unorthodox. Yet, I believe if one has a very good grasp of the market. They should be able to trade successfully on the lower tf. Simply look for your formations, and enter/exit at the correct moment. On a correct scalp. You should never spend more then 2 mins in red! Although it may come back to you and have you hit TP. It may very well be the start of a trend reversal which will put you in the hole big time.
  • #20
  • Jul 6, 2013 2:40pm Jul 6, 2013 2:40pm
Quoting Master_kiwa
Here is the same chart which I posted above. Yet, you can see the first blue box labels the first bband lower line touch. Then noticed how once we closed under the lower band several mins later. The price would then bounce off the middle band, then break the floor. Now simply go back and back test this same formation. You'll see the only difference between it moving up and down is the opposing band being touched, then closed across. {image}
I would be most grateful if you would post your lovely indicators and template - Many Thanks
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