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Micro trading technic with charts of 1 min

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Introduction

This is an ideal trading technique for those traders who like to make fast trades in the Forex market of few minutes (or even seconds) instead of several hours. With this strategy, the intraday traders can take advantage of small movements that ocurr in the different currency pairs which can be seen in the 1 minute candlestick charts.

Instruments

Initially this strategy was designed for the EUR/USD   but itcan be tested with other currency pairs or even other types of assets.

Indicators

Trading System Rules

  • The EMA 3 must cross through the midline of the Bollinger Bands 18.
  • At the same time the RSI and the MACD Histogram must be above 0 (MACD) and above 50 (RSI) as a buy signal. Conversely, if the MACD is below 0 and the RSI is below 50 the trader should open a short position. As you see the rules are very simple.
  • Is very important to remember to take small profits. This a scalping trading technique, so it is no designed to take big movements.
  • It is advisable to practice this trading strategy in a demo account before trading with real money.

Additional considerations with respect to the system

In the 1 minute charts the movements are very fast. This is a scalping trading technique. If scalping is not your style of trading, you can try other combinations of moving average in the same 1 minute chart that best suit your way you trade in the market:

  • EMA 7 and Bollinger Bands with a middle line of 18 periods.
  • EMA 5 and Bollinger Bands with a middle line of 20 periods.
  • EMA 10 and Bollinger Bands with a middle line of 20 periods.

Example

trading technique of 1 min charts

 

 

 

 

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1 comment to Micro trading technic with charts of 1 min

  • Michael Morris

    what purpose do the bollinger bands play, besides having a 18 EMA in the center plotline ? Why not just use an 18 EMA ? Do the outer bands mark a place to take profit ?

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