Courses / Technical Analysis Essentials

Scalping Strategies

Quick profits from rapid price movements

Scalping captures small price movements (1-10 pips) over seconds to minutes. It requires fast execution, tight spreads, and intense focus.

Requirements: - ECN/STP broker with tight spreads - Fast, reliable internet connection - Focus and discipline (no distractions) - Well-defined entry and exit rules

Popular scalping setups: 1. EMA crossover (5/13 EMA on 1-minute chart) 2. Support/resistance bounce on 5-minute chart 3. Breakout scalp on range break

Risk management: - Risk no more than 0.5% per scalp trade - Target 1:1.5 to 1:2 R:R - Set max daily loss limit (2-3% of account) - Stop after 3 consecutive losses

Pro tip: Scalping is a full-time job, not a hobby. If you can't give it 100% attention, use swing trading instead..

Common mistake: Scalping with a broker that has wide spreads. Better: You need ECN/STP execution with sub-1 pip spreads for scalping to work.

Key takeaways

  • Target 1-10 pips per trade
  • Requires tight spreads and fast execution
  • Maximum focus and discipline needed
  • Not recommended for beginners

Quiz

  • Scalping typically targets: Answer: 1-10 pips. Scalpers aim for very small, quick profits of 1-10 pips.

Educational content, not financial advice.