#ScalpingStrategy Key Elements of a Scalping Strategy

Timeframe: Use 1-minute, 5-minute, or tick charts for rapid trade execution.

Market: Highly liquid markets like forex (e.g., EUR/USD), indices (e.g., S&P 500 futures), or stocks with tight spreads and high volume.

Tools:

Level 2 Data/Time & Sales: To gauge order flow and market depth.

Indicators: EMA (e.g., 8 & 21), VWAP, RSI (for overbought/oversold), or Bollinger Bands.

Chart Patterns: Breakouts, pullbacks, or reversals at support/resistance.

Risk Management:

Tight stop-losses (e.g., 2-5 pips in forex or 0.1% in stocks).

Risk/reward ratio of at least 1:1.5 or 1:2.

Risk no more than 0.5-1% of account per trade.

Broker: Low spreads/commissions, fast execution (e.g., ECN brokers).