The " ONE CANDLE " Scalping Strategy I Will Use For Life

Introduction

This tutorial outlines the "ONE CANDLE" scalping strategy, a straightforward trading method designed for quick profits using a single candle. This strategy, refined over 20 years, requires no complex analysis or market biases, making it accessible for traders at any experience level.

Step 1: Understand the One Candle Concept

• Definition: The "ONE CANDLE" strategy focuses on trading based on the price movement of a single candle on the chart.
• Importance of Timeframe: Choose a short timeframe for trading, such as the 1-minute or 5-minute charts. This allows for quick entries and exits.
• No Bias Required: The beauty of this strategy is that it removes the need for market bias or extensive analysis. The focus is solely on the current candle.

Step 2: Identify Your Trading Pair

• Selection of Assets: Choose currency pairs or stocks that exhibit volatility. Popular pairs for scalping include major forex pairs like EUR/USD and GBP/USD.
• Check Market Conditions: Ensure that the market is active. Avoid trading during low-volume periods or major news events that can cause unpredictable price movements.

Step 3: Set Up Your Chart

• Chart Configuration: Use a clean chart with minimal indicators. The primary focus should be the price candles.
• Timeframe Selection: Set your chart to a 1-minute or 5-minute timeframe. This is crucial for capturing the quick price movements needed for scalping.

Step 4: Analyze the Candle Stick

• Candle Patterns: Observe the current candle's characteristics—its size, color, and position relative to previous candles.
• Entry Signal:
  • If the candle closes higher than the previous candle, consider it a buy signal.
  • If it closes lower, consider it a sell signal.

Step 5: Execute Your Trade

• Entry Point: Place your buy or sell order immediately following the close of the candle that meets your criteria.
• Stop-Loss Placement: Set a stop-loss just below the most recent swing low for a buy trade or above the most recent swing high for a sell trade. This helps mitigate potential losses.

Step 6: Manage Your Trade

• Take Profit Strategy: Aim for a quick profit target, typically 1-2 times your risk. For example, if your stop-loss is 10 pips away, set your take profit at 10-20 pips.
• Exit Strategy: Close the trade as soon as your profit target is hit or if the market shows signs of reversal.

Conclusion

The "ONE CANDLE" scalping strategy provides a simple yet effective approach to trading. By focusing on single candles and reducing analysis overload, traders can act quickly and capitalize on market movements. To implement this strategy:

• Choose volatile trading pairs.
• Set your charts to short timeframes.
• Monitor candle patterns closely for entry signals.

As you practice, refine your execution and develop your trading discipline to enhance your success with this approach. Happy trading!