Scalping Strategy 1: EMA + RSI Divergence
This strategy uses Exponential Moving Averages (EMA) and the Relative Strength Index (RSI) to catch momentum shifts.
Setup:
Timeframe: 1-minute (M1) or 5-minute (M5) chart.
Indicators:
EMA 9 (Fast EMA): Tracks short-term price action.
EMA 21 (Slow EMA): Helps identify trend direction.
RSI (14-period): Used to spot overbought/oversold conditions and divergences.
Entry Rules:
Buy Entry:
Wait for the 9 EMA to cross above the 21 EMA (bullish crossover).
Confirm with the RSI: It should be above 50, indicating bullish momentum.
Look for a bullish divergence (price making lower lows, RSI making higher lows).
Enter a long position.
Sell Entry:
Wait for the 9 EMA to cross below the 21 EMA (bearish crossover).
Confirm with the RSI: It should be below 50, indicating bearish momentum.
Look for a bearish divergence (price making higher highs, RSI making lower highs).
Enter a short position.
Exit Rules:
Take Profit: Aim for a 0.5% to 1% gain per trade.
Stop Loss: Set a stop loss just below the last swing low (for long) or above the last swing high (for short).