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Scalping is a fast-paced trading style focused on taking small profits from tiny price movements, over and over again. This guide is for new scalpers. We'll explain what to look for, discuss the tools traders use, and share a sample strategy to help you get started.
What Scalping Involves
In Forex, scalping means placing trades that last anywhere from a few seconds to a few minutes. The idea is to repeatedly profit from minor price changes and not look for big market moves or long-term trends. You're targeting micro-movements and quick bursts of volatility, aiming to build up small wins that add up over time.
Scalpers typically:
open and close trades quickly—often in under 5 minutes,
aim for small profits, like 3–10 pips per trade,
make many trades per day,
rely on fast execution, tight risk control, and discipline.
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Scalping works best when these three conditions are met.
Tight spreads - If you're paying several pips just to enter a trade, scalping isn't viable. Octa offers spreads starting from 0.6 pips on major pairs—that's where scalping starts to make sense.
Low latency execution -Speed is everything—not just your reflexes, but your broker's infrastructure too. In scalping, latency and slippage can be deadly.
High liquidity
Scalping is most effective on major currency pairs where there are plenty of buyers and sellers. For example, EURUSD offers steady order flow and narrow bid/ask spreads.
Common scalping signals to watch for
1. Mini breakouts
What to look for
Price moving sideways in a tight range, then suddenly breaking out.
Entry idea
Buy when the price breaks above the range with strong momentum, or sell if it breaks below.
Tip
It is common for prices to retest price levels they've just broken through. Therefore place your stop-loss beyond the breakout level.
2. Fast moving average crosses
What it is
A moving average is a tool that shows the average price of an asset over a certain period of time, helping you spot trends. An Exponential Moving Average (EMA) is a type of moving average that gives more weight to recent prices, so it reacts more quickly when the price starts to change.
9 EMA = average of the last 9 candles (fast)
21 EMA = average of the last 21 candles (slow)
Strategy When the 9 EMA crosses above the 21 EMA, it may signal a short-term uptrend. A cross below may suggest a sell signal.
3. Momentum сonfirmation
Use the RSI (Relative Strength Index), an indicator that shows whether an asset is overbought or oversold, helping you understand its price strength.
RSI > 50 → more buyers than sellers → good sign for buying
Combine with volume or candle patterns for more reliable entries
5 Useful indicators for Forex scalping (explained simply with settings)
Don't use all indicators at once. Choose 2–3 that make sense to you.
Indicator | What the indicator shows | What the numbers mean | How it helps in scalping |
EMA (9 and 21) Tip: use to time entries and exits | Indicates trend direction based on recent price movements | 9 = nine candles - short-term average (fast) 21 = twenty one candles - slightly longer average (slow) | Helps spot trend changes |
RSI (7) Tip: use to confirm trend momentum | Indicates strength of price movement (momentum) | 7 = looks at the last seven candles |
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Stochastic (5, 3, 3) Tip: use to look for crosses near extreme zones | Indicates whether the price may reverse soon |
| Gives signals when the price is overbought or oversold |
VWAP Tip: use to spot fair value | Indicates average price based on volume | No manual setting. It resets daily based on volume and price. | Helps determine if the price is high or low for the day |
Volume Tip: big spikes mean stronger trading activity | Indicates how active the market is right now | No settings needed | Higher volume means faster, more reliable price moves |
These indicators can be added in MetaTrader (MT4/MT5), TradingView, or your broker's app.
What you need in addition to a strategy
A fast, stable internet connection.
A trading platform with low-latency execution.
A calm, focused workspace—no distractions.
A habit of tracking your trades—including what you saw, why you entered, and how you felt. Over time, this becomes your most valuable tool.
Sample scalping strategy: EMA pullback
For educational or demo purposes, not financial advice.
🎯 Strategy: 1-minute EMA pullback
Best for: EURUSD, GBPUSD (high liquidity pairs)
Chart timeframe: 1-minute
Setup:
Indicators:
9 EMA (fast)
21 EMA (slow)
RSI (7)
Market condition: trending (avoid sideways ranges)
Buy example:
9 EMA crosses above
21 EMA → uptrend signal
RSI is above 50 → confirms momentum
Wait for the price to pull back near the EMAs
Enter on a strong green candle after a pullback
Stop loss (SL): 5 pips below entry
Take profit (TP): 5–10 pips above entry
Sell example:
Same steps in reverse:
9 EMA below 21 EMA
RSI below 50
Price reverses near EMAs
Enter on a red candle
SL/TP same as above
📌 Tip: backtest before going live. Use a demo account to test the performance.
Tips to scalp smarter
Trade when the market is active Best times:
London session: 8 a.m. – 12 p.m. GMT,
New York session: 1 p.m. – 5 p.m. GMT,
The London–New York overlap offers the highest liquidity.
Avoid big news releases
Unless you're specifically trading them, news events can trigger unpredictable spikes.
Stick to major pairs
EURUSD, USDJPY, GBPUSD → lower spreads, higher liquidity
Use 1M (1-minute) or 5M (5-minute) charts
Longer timeframes slow down scalping
Aim for a risk-reward ratio of at least 1:1
Don't risk 10 pips to make just 3, even when scalping.
Manage exposure
Focus on frequent, small trades, not oversized bets
Keep a trading journal
Record every trade: what worked, what didn't, and why
No revenge trading
Stick to your plan. Don't try to 'win back' a loss emotionally. Step away, reassess, and return with clarity.
With a clear strategy, discipline, and good risk management, scalping can be a smart way to grow your trading account, one small win at a time. If this is the kind of trading that appeals to you, Octa offers the fast execution, tight spreads, and clean trading environment that scalpers need.
Disclaimer: This article does not contain or constitute investment advice or recommendations and does not consider your investment objectives, financial situation, or needs. Any actions taken based on this content are at your sole discretion and risk—Octa does not accept any liability for any resulting losses or consequences.
Octa is an international broker that has been providing online trading services worldwide since 2011. It offers access to financial markets and various services used by clients from 180 countries who have opened more than 52 million trading accounts. Octa offers free educational webinars, articles, and analytical tools.
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