One-minute scalping trading is getting more and more popular. It is based on a 1 to the 15-minute timeframe. Traders prefer to close their positions in around 60 seconds instead of waiting for one-quarter of an hour or more. The reason for extreme popularity is the ability to complete a dozen transactions per trading session.
In binary option trading profit depends on the correct determination of the price direction but not on the number of passed points. Many experienced traders who are using scalping strategy do prefer to open and close positions manually because in this style every second can be very valuable. Since there is no guarantee that they will always achieve a high ratio of winning trades, most of them set their profit targets 2 or 3 times higher than risk amounts. This approach helps traders to increase their chances of earning decent payouts.
How to Set up Your Trading Terminal
Finally, for the purpose of detecting short term trends and potential reversals, some professionals make use of one minute strategy, since this gives them the opportunity to identify those signals in a relatively short space of time, without having to resort to complex candlestick pattern analysis.
The Pocket Option Broker platform is ideal for trading on the one-minute trading system. The minimum trade is only one dollar, which allows the trader to use the available funds as flexibly as possible.
We recommend you the following elements for your trading chart:
- trade currency EUR/USD;
- japanese candlestick;
- trade on 1-minute timeframe.
We will discuss a very simple one-minute strategy that such market participants can employ. As you can see, we will not use any additional tools for one-minute strategy.
The basics of one-minute strategy
As you know, the market cannot constantly move in one direction. Therefore, we see multidirectional candles on the chart. You can see that the Pocket Option trading platform displays ascending bars in green and descending bars in red.
On the M1 timeframe, a new candle is formed every minute. A signal to buy a contract will be the appearance of four bars in a row of the same color on the chart.
One-minute strategy is supported by the observations of experienced traders. Experts agree that there is 60% probability after four candles of the same color the opposite appears.
- CALL after the formation of four consecutive red candles;
- PUT after the formation of four green candles.
The frame is 1 minute.
By employing the one-minute strategy traders are making money from the reverse candle.
Here is one more advice. We think that 60% profitability is still risky. To manage the risks, you need to use the Martingale principle. Your trading deposit should be enough for 6 transactions. That’s why Pocket Option allows you to set the volume as low as $ 1. The strategy is working and making a profit on binary options even without knowing the basics of trading. Scalping is a trading style used by forex traders to buy or sell a currency pair and then hold it for a short period of time in an attempt to make a profit.
Market noise is inevitable when trading on short-term timeframes with a scalping trading style. Market noise refers to sudden price-movements without an obvious cause and is usually the result of capital flows, investor repositioning and bank transactions that can move the market to a certain extent. If you place your exit targets too tight when scalping, chances are that market noise will stop you out of your position or miss your profit target.