Bollinger Bands ® 1 Minute Scalping Strategy : Price Analyses

Bollinger Bands ® 1 Minute Scalping Strategy

The Bollinger Bands 1 minute scalping strategy involves using the Bollinger Bands to find opportunities on the 1-minute charts. The bands are used to help spot opportunities as well as exit and stop-loss zones. When combined with other indicators, this strategy can quickly bankroll your earnings.

As this strategy is only concerned with one-minute bars, attention should be put towards your risk management and position sizing. A conservative profit target is between 1% to 3% with a stop loss placed just beneath the lower Bollinger Band.

Despite trading on minutely candles, it’s still important to look at the intermediate and primary trend of the security to ensure that it’s trending upwards, otherwise you may find yourself being stopped out of the trade.

Bollinger Bands 1 Minute Scalping Strategy

Tips:

  • Buy when the price reaches the moving average.
  • Sell when price reaches the upper band.
  • Remember to set a stop-loss just beneath the lower band.

Executing the Bollinger Bands 1 Minute Scalping Strategy

The first step in the strategy is to find a security or currency pair that is trending strongly upwards. A good place to look is by the highest gainers in the last 24 hours. You also want to choose something that has a high enough liquidity and volume to execute a high number of trades.

Once you have found something with potential and determined that its trend is to the upside, the next step is to choose your entry and exit point. When the chart is then overlaid with Bollinger Bands, you’ll be able to see the index fluctuate between the upper and lower standard deviations.

The ideal position to scalp in is when the price is trading above the moving average. A sell limit order can then be set for the upper band or at a fixed percentage of your choosing.

Alternatively, if the price is consistently breaking out of its upper bands then this is a sign of considerable strength. In these situations, it’s also possible to scalp small percentages.

Something to avoid doing is attempting to scalp during strong downtrends, or when price is consistently breaking out of the lower envelope. Although prices may recover, its safer to assume that the sell-off will continue than reverse to the upside.

A comprehensive guide on Bollinger Bands can be read here with signals and more strategies included.

Matthew North

I have a passion for trading, behavioral finance, technology, travel, and writing. Contact: matthew@priceanalyses.com.

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