#ScalpingStrategy

Scalping is a short-term trading strategy focused on making small, frequent profits from minor price movements. Here's a brief overview:

• Timeframe: Trades last seconds to minutes, typically on 1-5 minute charts.

• Goal: Capture small price swings (5-20 pips in forex, cents in stocks/crypto).

• Key Tools:

° Technical Indicators: Moving averages (EMA/SMA), RSI, Bollinger Bands, VWAP.

° Price Action: Support/resistance levels, candlestick patterns.

° Level II Data: Order book and market depth for entry/exit cues.

• Entry/Exit:

° Enter on breakouts, pullbacks, or reversals with high volume confirmation.

° Exit with tight profit targets (e.g., 0.1-0.5% gains) and strict stop-losses (1:1 or 1:2 risk/reward).

• Risk Management:

° Limit risk to 0.5-1% of account per trade.

° Use stop-losses to cap losses.

° Avoid overtrading; stick to high-liquidity assets (e.g., EUR/USD, SPY, BTC/USD).

• Broker Requirements: Low spreads/commissions, fast execution (ECN brokers).

• Mindset: Discipline, quick decision-making, and emotional control are critical.

Scalping suits active traders comfortable with high-frequency trading and stress. Practice on a demo account first to refine execution.