1 Minute Trading Strategy - MT4/MT5 Resources
Part 1: Basics – Timeframes, Currency Pairs and Indicators
1.1 Definition of rectangle
The entire trading plan and strategy depends on one thing: rectangles. This box defines everything for us:
● Entry: We will have an entry inside the rectangle.
● Confirmation: The rectangle provides the necessary confirmation.
● Stop Loss (SL): Stop Loss is placed above or below the rectangle, depending on whether the trade is bullish or bearish.
● Take Profit (TP): Take Profit is too far from the rectangle, look for high risk reward settings.
1.2 Timetable:
This strategy utilizes the 15-minute (M15) chart and the 1-minute (M1) chart.
● M15 Chart: Used to identify high probability setups (M15 highs and lows).
● M1 chart: used for precise entry. One minute decides everything - you either qualify or you don't.
1.3 Currency pairs and trading sessions
The strategy is repeatable and simple. It's versatile and works with all pairings:
● Forex ● Cryptocurrency ● Futures, etc.
It can also run at any time of day when the setting is valid. However, settings can often be found around key conferences such as Asia, London or New York.
1.4 Indicators: Setting the direction
In order to ensure that we are trading in the correct direction of the market, we must first determine the direction.
The most basic and mechanical way to identify direction is to use the exponential moving average (EMA):
1. Indicator selection:
Use 50 EMA or 200 EMA. The 200 EMA generally gives an overall trend with a longer duration, while the 50 EMA is more sensitive.
2. Directional rules:
○ If the price is above the moving average, we will look to go long (buy) as this is a continuation of the price.
○ If the price is below the moving average, we look to go short (sell).
3. Structural inspection:
We must have a valid structure above or below the EMA; we should not just hang around the moving average.
Part 2: Basics
2.1 Continuity is the key
For this particular strategy, we are only focusing on the continuation setup. Continuation means going with the trend.
● We avoid reversals (countertrend setups).
● In an uptrend: we focus on the lows.
● In a downtrend: we focus on the highs.
We are looking for highs or lows that are consistent with the trend and have key levels below or above them (like an imbalance).
2.2 Advantages and Disadvantages: Trigger Points
This setup relies entirely on identifying weaknesses in the market.
● Strength is a continuation - when price falls below a low and closes below (or is above a high and closes above). This is disrespectful to the level.
● Weakness (our focus) is when price moves lower (or higher), but is rejected, fails to close above the low/high, and closes above the low (in a bullish case) or below the high (in a bearish case). This signals a potential reversal from that particular level. This repulsion is sometimes called wick repulsion.
2.3 Highest probability filter
To maximize quality over quantity, look for M15 highs and lows that meet the following criteria:
1. Internal Imbalance: Highs and lows that are within the imbalance or fair value gap are preferred.
2. Trading session highs and lows: Focus on trading session highs and lows (Asia, London or New York).
Part 3: 3 steps
The main goal is to capture M15 high probability liquidity sweeps (false shorts) using the M1 chart.
Step 1: Mark valid M15 high or low
Determine the high or low on the 15-minute chart that meets all criteria:
● Be sure to go with the flow.
● Preferably unbalanced.
● It must be part of a clean structure (for example, after structural damage).
Step 2: Wait for price to sweep across and close the position (weak trigger)
Wait for price to break out of the marked high or low, but then fail to close convincingly.
● Bullish scenario: We would like to see the price move lower, but then the candle closes above the low. This closure gives us the potential settings.
● Bearish Scenario: We want to see a bullish candle reach a high (if the move has not started yet), then the candle must close below the high (indicating weakness).
This closure creates wick repulsion. Without this trigger, we wouldn't have entered.
Step 3: Draw Rectangle and Enter on M1 Flip
Once the M15 candle closes, confirming weakness (step 2), we perform the final steps:
A. Draw a rectangle
The rectangle is drawn based on the M15 candle that triggered the weakness.
● Draw a rectangle (bullish example): Mark the rectangle from the closing price of the M15 candle to the lowest price of the same candle.
● Drawing a Rectangle (Bearish Example): Mark the rectangle from the closing price of the M15 candle to the high price of the same candle.
B. Find the M1 entry trigger
Immediately switch to the 1 minute time frame. The 1-minute price action around the rectangle determines your entry point.
Main entry trigger (safest): wait for 1 minute for the candle to close outside the rectangle (below or above).
● Bullish entry: The 1-minute candle must close above the rectangle. This closing is the first step for a "flip" to occur and is your signal to enter immediately.
● Bearish entry: The 1-minute candle must close below the rectangle.
Alternative/Aggressive Entry: If price moves inside a rectangle before the close, you can sometimes adopt a riskier entry strategy if there is a valid key level within it in anticipation of a reversal.
C. Set stop loss (SL) and take profit (TP)
● Stop Loss (SL): Set your stop loss slightly above the high or low of the rectangle formed.
● Take Profit (TP): The take profit setting is too far from the rectangle. You can target the next strong key level visible on the M15 chart, or simply target the 3:1 RR minimum.
Self-discipline tip: After entering, it is strongly recommended to only focus on the 15-minute time frame and ignore all noise in the 1-minute time frame.
simple checklist
Use this checklist before every trade to confirm you have a high-probability setup:
last word
You now have a complete trading strategy. The Rectangle Method works on any currency pair, any time frame, and you can start using it right away.
Many people ask, “Is this what I need?”
it depends. This method works best with continuous setups on M15 and M1 with clear structure and valid highs/lows.
Happy trading!
Credit: _mullam
1.1 Definition of rectangle
The entire trading plan and strategy depends on one thing: rectangles. This box defines everything for us:
● Entry: We will have an entry inside the rectangle.
● Confirmation: The rectangle provides the necessary confirmation.
● Stop Loss (SL): Stop Loss is placed above or below the rectangle, depending on whether the trade is bullish or bearish.
● Take Profit (TP): Take Profit is too far from the rectangle, look for high risk reward settings.
1.2 Timetable:
This strategy utilizes the 15-minute (M15) chart and the 1-minute (M1) chart.
● M15 Chart: Used to identify high probability setups (M15 highs and lows).
● M1 chart: used for precise entry. One minute decides everything - you either qualify or you don't.
1.3 Currency pairs and trading sessions
The strategy is repeatable and simple. It's versatile and works with all pairings:
● Forex ● Cryptocurrency ● Futures, etc.
It can also run at any time of day when the setting is valid. However, settings can often be found around key conferences such as Asia, London or New York.
1.4 Indicators: Setting the direction
In order to ensure that we are trading in the correct direction of the market, we must first determine the direction.
The most basic and mechanical way to identify direction is to use the exponential moving average (EMA):
1. Indicator selection:
Use 50 EMA or 200 EMA. The 200 EMA generally gives an overall trend with a longer duration, while the 50 EMA is more sensitive.
2. Directional rules:
○ If the price is above the moving average, we will look to go long (buy) as this is a continuation of the price.
○ If the price is below the moving average, we look to go short (sell).
3. Structural inspection:
We must have a valid structure above or below the EMA; we should not just hang around the moving average.
Part 2: Basics
2.1 Continuity is the key
For this particular strategy, we are only focusing on the continuation setup. Continuation means going with the trend.
● We avoid reversals (countertrend setups).
● In an uptrend: we focus on the lows.
● In a downtrend: we focus on the highs.
We are looking for highs or lows that are consistent with the trend and have key levels below or above them (like an imbalance).
2.2 Advantages and Disadvantages: Trigger Points
This setup relies entirely on identifying weaknesses in the market.
● Strength is a continuation - when price falls below a low and closes below (or is above a high and closes above). This is disrespectful to the level.
● Weakness (our focus) is when price moves lower (or higher), but is rejected, fails to close above the low/high, and closes above the low (in a bullish case) or below the high (in a bearish case). This signals a potential reversal from that particular level. This repulsion is sometimes called wick repulsion.
2.3 Highest probability filter
To maximize quality over quantity, look for M15 highs and lows that meet the following criteria:
1. Internal Imbalance: Highs and lows that are within the imbalance or fair value gap are preferred.
2. Trading session highs and lows: Focus on trading session highs and lows (Asia, London or New York).
Part 3: 3 steps
The main goal is to capture M15 high probability liquidity sweeps (false shorts) using the M1 chart.
Step 1: Mark valid M15 high or low
Determine the high or low on the 15-minute chart that meets all criteria:
● Be sure to go with the flow.
● Preferably unbalanced.
● It must be part of a clean structure (for example, after structural damage).
Step 2: Wait for price to sweep across and close the position (weak trigger)
Wait for price to break out of the marked high or low, but then fail to close convincingly.
● Bullish scenario: We would like to see the price move lower, but then the candle closes above the low. This closure gives us the potential settings.
● Bearish Scenario: We want to see a bullish candle reach a high (if the move has not started yet), then the candle must close below the high (indicating weakness).
This closure creates wick repulsion. Without this trigger, we wouldn't have entered.
Step 3: Draw Rectangle and Enter on M1 Flip
Once the M15 candle closes, confirming weakness (step 2), we perform the final steps:
A. Draw a rectangle
The rectangle is drawn based on the M15 candle that triggered the weakness.
● Draw a rectangle (bullish example): Mark the rectangle from the closing price of the M15 candle to the lowest price of the same candle.
● Drawing a Rectangle (Bearish Example): Mark the rectangle from the closing price of the M15 candle to the high price of the same candle.
B. Find the M1 entry trigger
Immediately switch to the 1 minute time frame. The 1-minute price action around the rectangle determines your entry point.
Main entry trigger (safest): wait for 1 minute for the candle to close outside the rectangle (below or above).
● Bullish entry: The 1-minute candle must close above the rectangle. This closing is the first step for a "flip" to occur and is your signal to enter immediately.
● Bearish entry: The 1-minute candle must close below the rectangle.
Alternative/Aggressive Entry: If price moves inside a rectangle before the close, you can sometimes adopt a riskier entry strategy if there is a valid key level within it in anticipation of a reversal.
C. Set stop loss (SL) and take profit (TP)
● Stop Loss (SL): Set your stop loss slightly above the high or low of the rectangle formed.
● Take Profit (TP): The take profit setting is too far from the rectangle. You can target the next strong key level visible on the M15 chart, or simply target the 3:1 RR minimum.
Self-discipline tip: After entering, it is strongly recommended to only focus on the 15-minute time frame and ignore all noise in the 1-minute time frame.
simple checklist
Use this checklist before every trade to confirm you have a high-probability setup:
last word
You now have a complete trading strategy. The Rectangle Method works on any currency pair, any time frame, and you can start using it right away.
Many people ask, “Is this what I need?”
it depends. This method works best with continuous setups on M15 and M1 with clear structure and valid highs/lows.
Happy trading!
Credit: _mullam
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