Easy MONEY With Easy 1-Minute Scalping Strategy [Most Accurate Signals Ever]

Summary

This one-minute scalping strategy utilizes three customized MACD indicators to identify accurate trading signals across various markets, including Forex, stocks, and crypto. By analyzing momentum shifts with multiple MACD timeframes (long-term, mid-term, and short-term), traders can make informed decisions to enter long or short positions. The strategy emphasizes the importance of liquidity, volume, and managing risk through the 2:1 risk-to-reward ratio and the one percent rule. While effective in trending markets, it requires attention to market conditions to avoid false signals in flat markets.

Takeaways

• 😀 Use a one-minute scalping strategy to take advantage of short-term price movements across various assets like Forex, crypto, and stocks.
• 😀 Ensure the trading asset has sufficient trading volume and liquidity to avoid large spreads and price gaps that could affect trade entry and exit.
• 😀 Set up three MACD indicators with different settings: 34/144 for long-term, 13/21 for mid-term, and 5/8 for short-term to analyze momentum and trends.
• 😀 Focus on identifying market trends using the MACD at different timeframes: bottom MACD for long-term trend, middle for mid-term momentum, and top for short-term signals.
• 😀 Look for long entry signals when the bottom MACD is green, indicating an uptrend, followed by light green bars in the middle MACD and dark green bars in the top MACD.
• 😀 Place a stop loss below the previous swing low and set a profit target with a risk-to-reward ratio of 2:1 for long trades.
• 😀 In case of momentum weakening, indicated by light green or light red bars, wait for a shift in the top MACD, such as dark green or dark red bars, to enter a new position.
• 😀 When the overall trend is down (red MACD), look for short entry opportunities and use similar momentum confirmation from the middle and top MACD to enter the trade.
• 😀 Apply risk management strategies, such as the 1% rule, to ensure you minimize losses and protect your capital, especially in scalping strategies.
• 😀 Understand that no trading strategy, including scalping, guarantees 100% success, and losing trades are part of the process. Proper risk management is crucial for long-term profitability.

Q & A

What is the core concept of the scalping strategy explained in the video?

The core concept of the scalping strategy is to trade using three MACD indicators on a one-minute chart, focusing on short-term price movements and momentum shifts to enter long or short positions with a risk-to-reward ratio of 2:1.

Why is liquidity and trading volume important for this scalping strategy?

Liquidity and trading volume are crucial for this strategy because it focuses on small price movements. Low liquidity can lead to significant price gaps or large bid-ask spreads, which can interfere with accurate trade entries, stop loss, and profit targets.

What settings should be used for the three MACD indicators?

The settings for the MACD indicators are as follows: 1. First MACD (long-term): Fast length = 34, Slow length = 144. 2. Second MACD (mid-term): Fast length = 13, Slow length = 21. 3. Third MACD (short-term): Fast length = 5, Slow length = 8. In all three MACDs, only the histogram is used, with the MACD line and signal line turned off.

How do you identify a potential buy (long) signal in this strategy?

A potential buy signal is identified when the first MACD (long-term) shows a green bar, indicating an uptrend. Then, the middle MACD shows a light green bar, signaling weakening momentum. Once this happens, check the third MACD for the first red bar, followed by a dark green bar, which indicates increased momentum, signaling a buy entry.

How do you manage the stop loss and profit for a long position?

For a long position, the stop loss is placed below the previous swing low, and the profit target is set based on a risk-to-reward ratio of 2:1. This ensures a balanced approach to risk and reward.

What is the significance of the color changes in the MACD histograms?

The color changes in the MACD histograms indicate momentum shifts in the market. Light-colored bars (light green or light red) show weakening momentum, while dark-colored bars (dark green or dark red) indicate increasing momentum in the prevailing trend, helping traders identify potential entry points.

What should you do when the MACD indicators show a flat market?

In a flat or non-trending market, the MACD histograms will fluctuate and change colors frequently. This makes the strategy less reliable, and traders should avoid taking trades during such periods, as the signals may be false.

How do you identify a potential short (sell) signal in this strategy?

A potential short signal is identified when the first MACD (long-term) shows a red bar, indicating a downtrend. Then, the middle MACD shows a light red bar, signaling weakening momentum. Once this happens, check the third MACD for the first green bar, followed by a dark red bar, which indicates increased downward momentum, signaling a short entry.

What role does risk management play in this scalping strategy?

Risk management is essential in this scalping strategy to minimize losses and ensure consistent profitability. The strategy uses a 1% risk rule, which limits exposure on any single trade, reducing the impact of losing trades and allowing for long-term success in scalping.

Is this scalping strategy foolproof, and how should traders approach it?

No, like any other trading strategy, this scalping strategy is not foolproof. It works well in trending markets but can produce false signals in flat or sideways markets. Traders should focus on proper risk management and avoid trading in non-trending conditions to increase their chances of success.