What is Scalping? Basic Concepts and Characteristics
Scalping is a high-frequency trading method that completes trades in extremely short periods, from seconds to minutes. It accumulates profits from small price movements, executing dozens to hundreds of trades per day. This method requires high concentration and rapid decision-making but can generate consistent profits when executed properly.
Success in scalping requires an excellent execution environment. Milton Markets' sub-0.1-second execution speed and NDD (No Dealing Desk) technology provide an ideal trading environment for scalping traders.
Scalping vs Other Trading Styles
⚡ Scalping
- • Hold time: Seconds to minutes
- • Profit target: 2-10 pips
- • Frequency: 50-200 trades/day
- • Risk: Very small, high frequency
📈 Day Trading
- • Hold time: Minutes to hours
- • Profit target: 10-50 pips
- • Frequency: 5-20 trades/day
- • Risk: Small to medium
📊 Swing Trading
- • Hold time: Days to weeks
- • Profit target: 50-200 pips
- • Frequency: 2-10 trades/week
- • Risk: Medium to large
VWAP-Based Scalping Strategies
VWAP (Volume Weighted Average Price) is one of the most important indicators for institutional investors and is extremely effective for scalping. You can instantly judge market strength by whether price is above or below VWAP.
🎯 VWAP Scalping Strategy
Long Entry Conditions
- • Price above VWAP
- • Confirm volume increase
- • Bounce from VWAP
Short Entry Conditions
- • Price below VWAP
- • Confirm selling pressure
- • Resistance at VWAP
RSI Scalping Techniques
RSI (Relative Strength Index) is one of the most reliable oscillator indicators for scalping. It excels at identifying overbought and oversold conditions on 1-minute and 5-minute charts, making it ideal for predicting short-term price reversals.
📈 RSI Long Strategy
- 1. Oversold Confirmation
RSI < 30 for oversold condition - 2. Reversal Signal
RSI breaks above 30 - 3. Price Confirmation
Price bounces from support
📉 RSI Short Strategy
- 1. Overbought Confirmation
RSI > 70 for overbought condition - 2. Reversal Signal
RSI breaks below 70 - 3. Price Confirmation
Price rejects from resistance
Scalping Risk Management
Risk management is particularly crucial in scalping due to high-frequency trading. While individual losses are small, consecutive losses can significantly damage your account. We explain optimal risk management strategies for each Milton Markets account type.
💼 Scalping Settings by Milton Markets Account Type
Flex Account
- • Risk: 0.5-1% per trade
- • Spread: From 1.7 pips
- • Slippage protection included
- • Beginner-friendly settings
Smart Account
- • Risk: 1-2% per trade
- • Spread: From 1.0 pips
- • Leverage: Up to 1:1000
- • Optimal balance
Elite Account
- • Risk: 0.5-1% per trade
- • Spread: From 0.0 pips
- • Institutional level
- • Optimized for professionals
Bollinger Bands Scalping
Bollinger Bands are particularly powerful for scalping methods that utilize price volatility and mean reversion characteristics. By reading band expansion and contraction, and price movement within bands, you can find high-precision entry points.
🎯 Bollinger Bands Scalping Setup
Recommended Settings
- • Period: 20
- • Standard Deviation: 2.0
- • Timeframe: 1M, 5M
Trading Signals
- • Sell at upper band
- • Buy at lower band
- • Bounce from middle line
Choosing the Right Broker for Scalping
Scalping success heavily depends on broker selection. Execution speed, spreads, execution method, and slippage all directly impact scalping profitability. Here's why Milton Markets is optimal for scalping.
✅ Milton Markets Advantages
- • Sub-0.1s execution speed
- • NDD execution, no requotes
- • Competitive spreads
- • Slippage protection (Flex account)
❌ Broker Features to Avoid
- • Slow execution (1+ seconds)
- • Frequent requotes
- • Wide spreads (3+ pips)
- • Scalping restrictions
Start Your Scalping Trading Journey
Master advanced scalping techniques and aim for success in short-term trading. Start with demo practice and develop proper risk management skills.