This is a techinque designed for the trader that is likely to get in and out with a smaller profits, and is not able to trade for hours. Here is a great example of how you can use the 1 minute charts to trade the ecomonic news releases and general news releases. To find out when the world economic, earnings, downgrades, upgrades releases are, simply google it or scroll down the right side of this blog to the bottom for a list of websites or current week news releases that impact the markets. Using the 1 minute strategy along with the news, is an effective way of scapling profits on the markets.
**Tip: Remember to wait a mintue or two after the announcement. Don't open a position before the scheduled time!
**Tip: There are news releases all throughout the week during the different time zones and trading sessions. This techinque works well during premarket and after market sessions.
Attention:
Using the 1 mintue charts is fast moving. It might not be your style of trading. If you want to test out slower moving averages combinations that whipsaw less often on the 1 minute charts, you can try these:
7, 5 and 10 EMA
Detail :
- Wait for the 4 SMA to cross through the 21 EMA
- Wait for the Stochastics - If either the %K or %D fall below 20 and then starts to rise again above 20, this may be considered a buy sign. Similarly, a selling signal is thought to occur if the indicator rises above 80 and then begins to fall below 80.
- Remember to take small profits
- Practice this strategy on your demo account.
