Scalping EUR/USD: Quick Profits in Fast Markets

Scalping is a trading style focused on capturing small price movements through numerous trades. EUR/USD, as the most liquid forex pair, offers ideal conditions for scalping with tight spreads and consistent price action.

Scalping Requirements

• Low spreads: Costs matter when taking many trades
• Fast execution: Slippage can destroy profitability
• High liquidity: Ensures consistent fills
• Strict discipline: Small losses can accumulate quickly

Optimal Scalping Times

Focus on high-liquidity periods:

• London-New York overlap (1-5 PM GMT)
• London session open (8 AM GMT)
• New York session open (1 PM GMT)

Scalping Strategy Example

Setup

• Timeframe: 1-5 minute charts
• Indicators: EMA 9, EMA 21, RSI 14
• Target: 5-10 pips
• Stop: 5-7 pips

Entry Rules

1. Wait for 9 EMA to cross 21 EMA
2. RSI should confirm direction (above 50 for longs, below 50 for shorts)
3. Enter on pullback to the 9 EMA
4. Exit at predetermined target or stop

Risk Management

• Never risk more than 0.5-1% per trade
• Set daily loss limits (e.g., stop after losing 3% of account)
• Take breaks every 1-2 hours to maintain focus