by 1-minute candlestick trading strategy for beginners. This strategy works best for scalping and binary trading on the 1 minute time frame (this simple strategy also works on higher time frames).
In this article, we’re going to look at the 1-minute candlestick trading strategy. So looking at this 1-minute chart hereof Index and really how to trade the one-minute candlestick trading strategy what you want to do is have a few rules first so the first rule of this strategy is trade in the direction of the trend.
So how do we define the trend for the one-minute candlestick trading strategy well we use exponential moving average if we add a moving average period 8 and exponential we can see the moving average like this and basically what this rule now says is I only want to take trades that have the entry level above the moving average for buy signals and below the moving average for sell signals.
Setup for 1-minute candlestick trading strategy
The setup for the 1-minute trading strategy is basically very very simple a candlestick pattern and the can see the pattern is the doji candlestick.
We define the doji candlestick by the body as one-third of the range of the candle so this right here is a doji and you can see in the chart this is a doji these bodies here are too big so these are not dojis here’s a doji and here’s a doji alright. So now we have a trend and we have the setup.
What are the entry and exit rules in 1-minute candlestick trading strategy?
Simple for bearish short trades you want a doji with its low below the moving average and preferably you want the lower shadow to be longer than the upper shadow and the entry for this strategy is the low of the doji and you place your stop-loss above the doji and you place your take profit one to one risk-reward.
let’s look at how that would look our entry would be here our stop-loss would be here and our take profit would be down here this would play out very nice basically entry and take profit down here and this candlestick here broke down and then closed up so right into our take profit and then up and closed higher and then it continued lower now we don’t have a new signal here during this whole time but then you have a doji here and you want the entry to be above the moving average as shown in chart.
You want preferable the upper shadow be longer than the lower and you place your entry at the high you place your stop-loss below the doji and you place your take profit 1:1 risk reward so for this place your enter here you would place your stop-loss here your take profit here as shown in the chart.
This was also a nice winning trade here the beautiful thing about this strategy is that you can let your profits run and how do you do that this is kind of an upgrade for you guys to trade a 1-minute training strategy and really this will increase your profits a lot.
How to let profits run using a trailing stoploss
So you see you already take a very very small risk here and to really increase the profitability and make very high rewards here is you don’t place a take profit target instead you use the moving average as your trailing stop-loss so as you can see in the chart for this trade here you would still be in this trade because the price hasn’t touched the moving average yet.
I mean this is a risk-reward of at least ten to one so this is a very very powerful strategy when used correctly we have doji and as I said the high is about the average so this is a valid trade so our entry or stop-loss is below the doji and you can either place your take profit one to one risk-reward or you can let this ride here would be the point where you exit.
if you let your profits run and like you can take off your trades at the one to one risk-reward and let the other half run just before we right here we had a do as well and this too is a valid buy with entry our stop-loss and this was also a winning trade.
That’s how you trade the one-minute candlestick trading strategy. You can also use this strategy in higher timeframes for swing trading.
Conclusion
1-minute candlestick trading strategy for day trading is usually the best trading strategy to take the trade. This setup is very easy and simple to use just you need to keep patience and let your setup form and then you can enter your positions. Stoploss should be the low or high of the inside bar candle for uptrend and downtrend and the target would be as per your risk-reward ratio. One should follow the Risk Management, Money Management, and Fear and Greed concept of the market to avoid big losses.
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