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Quick 1 min timeframe scalping strategy

Quick 1 min timeframe scalping strategy. It is Simple But Profitable(small profits)

Many of us heard of quick scalpers or jobbers who keep punching orders in live market. this setup here is similiar where 1 min Timeframe quick in and out of market is done at fixed points with minimum Risk Reward 1:2

Traders adopt a variety of strategies in order to constantly beat the markets and profit, but scalping is one of the most profitable methods of trading. Scalping is a type of trading that entails executing a series of little winning deals in order to increase earnings by focusing on number rather than quality. Rather than undertaking a lot of detailed technical analysis, the primary aim of such methods is to use trading volumes. There are a variety of such trading tactics, one of which was detailed in this article. Continue reading to learn more.

Indicators Explained

There are 3 main indicators used in this trading setup, and each of these indicators has been explained below in detail.

EMA

The exponential moving average of stock’s closing price over certain number of trading sessions is known as the EMA. 
It functions similarly to the SMA (Simple Moving Average), with the exception that it prioritises more recent data because it is regarded more important than older data. 
The time period is the parameter that must be entered for the EMA. 
Traders often go long when prices are above the EMA and short when prices are below the EMA.

RSI

The RSI is momentum indicator that may be used to determine if company is overbought or oversold at any given time. 
It achieves so by keeping track of the size of recent price movements. 
The RSI is expressed as number between and 100, with value below 20 indicating an oversold stock (ripe for long position) and value above 80 indicating an overbought stock (ripe for short position) (ripe for short).

Engulfing Candle Pattern

An engulfing candle pattern is candlestick pattern used to identify trend reversals. 
bearish engulfing pattern and bullish engulfing pattern are the two types of engulfing patterns. 
When bearish candle is followed by significantly larger bullish candle that looks to engulf it, this is known as bullish engulfing. 
bearish engulfing, on the other hand, occurs when bullish candle is followed by very huge bearish candle that appears to engulf it.

Trade setup Explained:

For this particular trading setup, the following settings were used on the indicators:

EMA

EMA: Period = 200

Two indicators in trading view

Bullish and Bearish Engulf pinescript: Detection set to no trends in tradingview

RSI

RSI: The 50-line was marked clearly.

  1. A long position will be initiated when the current price is above the 200 EMA, there is a bullish engulfing pattern, and the RSI is above 50.
  2. A short position will be initiated when the current price is below the 200 EMA, there is a bearish engulfing pattern, and the RSI is below 50.

The risk/reward ratio was set at 1:2.

Trading Results

Initial Results

Around 60% + profitable and its quick in and out in 1 min timeframe.

Adjustments

Some additional indicators and settings that can be added in order to increase the pop like:

The ADX indicator could be added to weed out bad trades that would’ve been made when the trend was about to end. (Rising ADX above 25-30 mark is good indicator for trending strength.)

We can also change the EMA period from 200 to 50 or 100 for better results.

Conclusion

Scalping has been demonstrated to be one of the most profitable trading methods available; nevertheless, even when scalping, you must maintain high win rate in order for the approach to be beneficial and profitable. 
You may benefit consistently in both bull and bear markets if you use the trade setup described above. 
You may even adjust the settings to suit your level of risk and trading style, ensuring that the win rate and net profit are in balance. always keep your emotions on check and act like robot ….
This article is also for educational purpose only and should be tested/backtested on your own. This will also give you confidence in a setup.

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