The proposed minute strategy is perfect for beginners who traditionally prefer short-term intraday deals. Just one indicator, minimum knowledge of candlestick analysis and simple trading recommendations allow almost anyone to earn — not much, but steadily. Scalping attracts novice traders as a magnet to the detriment of technical analysis and risk control. If you can find a stable working scalping strategy on time, the trading account has a good chance to "survive" while its master trader gets technical knowledge and practical experience.
This minute strategy stands out among the various scalping systems because it was specially designed to work with popular currency pairs on short timeframes. The method is based on using a combination of standard candlestick analysis with a high degree of reliability. Only a simple exponential moving average of closing prices with period 9 for M15 period is used as an indicator of the direction of the trend, and then the current candles location relative to the moving is analyzed.
Now we need to define a "free candle", which became the basis of this minute strategy. This is considered to be a fully formed minute candle, body and shadows of which do not touch the built moving average, despite the fact that its closing price is above the previous high for the uptrend or below the previous low for the downtrend market. On a real chart, such candles appear quite often and give good entry points.
You should better work during European and US session — the Asian volatility may not be enough. First of all, we define the general direction of the trend — by EMA 9: Then analyze the candles location relative to the line, looking for free candles. For bullish direction, closing price must be higher than the previous max, for bearish — below the previous low. To go long buy on the minute strategy, you need a "free" white candle located above the moving average line.
Once the next candle is opened — enter at the market price, but you can also place pending order BuyStop just above the closing price of the previous candle. StopLoss is recommended to set points below the minimum of the "free" candle used for the analysis — after the price has passed the size of the stop, move it to breakeven and then trail along with the movement. To enter sell, you need a "free" black candle located below the moving average. Open at the opening of the next candle — at the market price or with a pending order SellStop.
Profit on open positions can be calculated using the usual approach to money management, but it is recommended to use double the range size of the "free" candle. Work during periods of market instability news, the end of the sessions, etc. Open position can be hold at the market price until the distance from a closure point to the average is at least half of the "free" candle. A good time to enter with the main currency pairs is minutes after the opening of the European session, when the market has already decided on the direction of the market.
The average time for an open transaction is up to 1 hour. Work without stops is not recommended. You can try the options of minute strategy options with another EMA period: Usually there is a temporary rollback from the trend movement at the beginning of every hour, so it is not recommended to enter during the first 15 minutes of the hour.
Trading system "Free Candle" is quite efficient in terms of the expectation: Since it uses the conventional principles of candlestick analysis, you can try the simultaneous operation on several instruments at a reasonable capital management. Availability and even some primitiveness of the system is slightly marred by a large number of "false" signals, so it is recommended to add a filter to the technique — at least the standard MACD.
This simple minute strategy is useful to both beginners and experienced traders to earn on a quiet, predictable market as a small profitable addition to more complex trading systems. Forex About the site. Indicators and mathematics of the strategy The method is based on using a combination of standard candlestick analysis with a high degree of reliability. All information is provided for reference and cannot be considered as a recommendation.
Website administration is not responsible for damages resulting from the use of the information provided. Settlement of transactions in the foreign exchange and stock markets involves taking concomitant, high risks by the trader. Before you start trading, you need to understand how much you can lose, and in no case change this amount. Please only risk with the funds available to you, and do not use borrowed money in trading.More...