There are several approaches of using the VWAP indicator.

Unlike most other technical indicators, it is only useful in an intraday format.

It is a technical indicator that seeks the overall average of an asset in a certain period of time. One of the best one is known as the Volume Weighted Average Price (VWAP). There are many day trading indicators that you can use when scalping. You can then ride the new trend for a while. When a double-top pattern happens, the likely outcome is that the price will have a bearish breakout. Reversal patterns are double or triple top and bottom patterns. Therefore, you can just wait for a breakout to happen and then hold the trade for a while. On the other hand, when you see a descending triangle, the likely price action will be a bearish breakout. When you see an ascending triangle pattern, it means that the asset’s price will likely have a bullish breakout. Other continuation and reversal patternsĪnother scalping strategy when you are identifying other continuation and reversal patterns in a chart.Įxamples of continuation patterns are ascending and descending triangles and cup and handle. A good example of a bullish flag pattern in a 1-minute chart is shown in the chart below. Whenever they happen, they usually end with a continuation of the existing trend. These flags and pennants are usually breaks that exist during an uptrend or a downtrend. A pennant has a shape that looks like a triangle. » Related: The best trend indicators Bullish and bearish flags and pennantsĪnother strategy to use when scalping on a 1 minute chart is to identify an existing trend and then establish flag and pennant patterns.Ī flag is a pattern that has a flag pole and a rectangle type of consolidation. This is usually possible because most bullish trends tend to be followed by a bearish move. In this case, you will make some cash when the price rises and then move on to the next one.Īt times, you can ride a bullish trend and then make money when a bearish trend starts. Your goal is to find an asset that is in a bullish trend and then just buy, especially when it makes a pullback. Trend following is a fairly simple strategy to use when you are scalping in a 1-minute chart. Similarly, if the stock is moving in a downward trend, you can short the asset and benefit as the price rises, If an asset is moving in an upward trend, then you can initiate a buy trade and hope that the trend will continue. It is a trading strategy that identifies an already-established trend and then follows it until it changes its direction. One of the most popular 1 minute scalping strategies is known as trend-following. Let us look at some of the best 1-minute scalping strategy when scalping. However, that's not the focus of our post. However, there are types of traders who can benefit greatly from using different time frames. But in this case, one-minute traders don’t care about the performance in longer periods. However, when we shift it to a four-hour chart, it shows that the coin is actually in a bullish trend. For example, a visual look of the chart above shows that the coin is basically in a downward trend. The chart below shows how such a chart looks like in Cardano’s chart.Ī 1-minute chart can be deceiving in the longer term. In a 1-minute chart, each bar usually represents 1 minute period, meaning that you will be seeing the bars move in real-time. For example, each candlestick in a hourly chart represents one hour.Ī 1-minute scalping strategy refers to a situation where a trader uses the 1-minute chart to conduct analysis and execute trades. Using longer charts in scalping will tend to lead to substantial losses because each candlestick represents a longer period. As such, they use very short-term charts, with a maximum size of about 5 minutes. Scalping is a relatively unique strategy in that the trader tends to open a trade and then close it within a few minutes. There are other day traders who spend their entire day finding and implementing different strategies.

There are those who initiate trades in the morning and then close them when they are ending the day.

Therefore, day traders use a number of approaches. They believe that doing so is a high-risk thing that will tend to lead to significant losses. It differs from other approaches simply because day traders don’t believe in holding trades in the overnight session. Summary: Is the 1 minute timeframe the best for scalping?ĭay trading is the practice of opening multiple trades in a day.Other continuation and reversal patterns.

Best trebs trading system fir scalpers