1 min macd scalping strategy is a type of trading system which is based on four distinctive technical indicators. These are MACD, 20 EMA,30 EMA and 150 EMA. Experienced traders apply this type of day trading system to scalp the market and gain only a few pips from hundreds of thousands of market pips.
Although we can apply a 1 min macd scalping strategy on cross currency pairs and minor currency pairs, we will stick to only major currency pairs for a high probability trade setup.
For getting trade setups, we need to search for strong trends first. Then, we will find our high profitable setups on the swing points of the markets.
Moving average indicator
Basics of 3 different EMAs
We use here three different EMAs.20-period exponential average, 150-period exponential moving average, and 30-period moving average. In our trading chart, these EMAs will work as support and resistance. If the price remains above 150 periods EMA, then we will search for buy setups. On the other hand, if the current price breaks 150 ema and remains below it, we will only search for a sell set up.
First, identify the change of the market trend. If 20 EMA pushes above 30 EMA, then we will guess that a bullish rally is coming. Conversely, if the 20 EMA crosses below 30 EMA, then be sure that a bearish move is coming.
Although the best macd settings for day trading is 12,26,9. But as we trade on the 1-minute chart for scalping so our macd settings for 1 minute chart will be 13,26,10
MACD indicator will help us to make trading decisions. If we find grey histogram bars above the reference line, we will expect a bullish rally in the market. The longer the grey bars, the stronger the signal. If we find grey bars below the histogram bars, then we will open a short trade.
macd setting for 5 min chart
You can scalp with this strategy even in a 5 minutes chart if you opt for a slightly higher timeframe. Every setting will remain the same except MACD. our macd settings for 5 minute chart will be 11,24,9
macd settings 8-17-9
Many European and American traders use custom MACD indicators like 2 line macd indicator for mt4. They also apply different MACD settings. Some trading journals claim that traders from Europe and America earned vast wealth trading forex because of their different MACD settings. If you wish to try the different settings, you can also apply macd settings 8 17 9 in your 1 min macd scalping strategy. If you get good results, then just continue this setting.
Trading hour for 1-minute Forex trading strategy
If your time frame selection is not correct, you won’t be able to make money scalping forex. When you apply 1 min macd scalping strategy, then you need to be very cautious. You have to trade only busy hours when there is high volatility in the market. If you don’t trade on busy hours then you will get many false signals. That’s why the ideal periods of time for 1 min macd scalping strategy is the US –London overlap session. You will find many trade setups during this overlap session.
You have to analyze your setup and trading data in a 1-minute time frame, so you have to be super careful regarding spread.
Don’t trade during news releases time. As news time spreads get high, I suggest staying away from the market during news hours. Again if your broker is not well regulated, then change your broker. You can’t select a good broker; you won’t be profitable trading this system as spread will eat out all your consistent profit.
In forex you will find too many indicators, some are default like moving average, RSI, stochastics, and some are customized like macd 2 line indicator mt4. Among all default indicators, MACD and moving average are the ones. And as this strategy is a combination of both so if you just follow the proper money management rules then making money will be very easy for you with this strategy.
Many professional traders use customized profitable indicators Although I narrated everything regarding the 1 min macd scalping strategy above, you still need to practice this strategy a couple of weeks before applying it to your real trading platform. Remember, if you go for live trading without practicing this system, then even this profitable system could bring out a loss for you.
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David Roads is a full-time trader. His trading style is based mostly on swing trading and Day trading. He’s the Chief Analyst of parkingpips & contributor to numerous finance journals. David Roads has 15 years of experience working with hedge funds, banks & investing companies. He has a Prestigious Chartered Financial Analyst (CFA) degree and worked as a financial advisor and investment analyst before escaping the “rat race” to focus on trading full-time. David Roads has Deep expertise in news events, market reactions, macro trends, economic themes & price action.