Key Takeaways
Momentum Scalping
Rides short-term momentum bursts on lower timeframes, entering when price shows strong directional movement and exiting before momentum fades.
Market Psychology
Momentum begets momentum. When price starts moving strongly, other traders notice and join, creating a self-reinforcing move that scalpers can exploit.
šStrategy Visualization
Strong momentum candle, enter on pullback
In-Depth Strategy Guide
Momentum scalping captures short bursts of directional movement. The key is entering when momentum is building, not when its exhausted. Look for strong candles with above-average volume.
Always trade momentum in the direction of the higher timeframe trend. Counter-trend momentum trades have much lower win rates and should be avoided.
Exit quickly when momentum fades - this is signaled by smaller candles, decreasing volume, and RSI levels reaching extremes.
šRecommended Python Libraries
š„ Entry Rules
Wait for strong candle close above/below 9 EMA
RSI should be above 60 for longs, below 40 for shorts
Volume should be above average
Enter on pullback to 9 EMA or breakout continuation
š¤ Exit Rules
Exit when RSI reaches opposite extreme
Close if price crosses back through 9 EMA
Use 10-20 pip fixed targets
Time-based exit after 15-30 minutes
š”ļø Risk Management
Quick Exits
Momentum fades fast - exit early if move stalls
Volume Confirmation
No volume = likely false momentum, skip the trade
Trend Alignment
Trade momentum in direction of higher TF trend
Indicators Used
EMA 9/21
Short-term trend and entry signals
RSI (7)
Momentum confirmation
Volume
Confirm momentum with volume spike
Best Timeframes
Best Market Conditions
Common Mistakes to Avoid
Pro Tips
Educational Disclaimer
This content is for educational purposes only and does not constitute financial or investment advice. Trading involves significant risk and you may lose your capital. Always consult a licensed financial advisor before making investment decisions.
Frequently Asked Questions
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