1. Introduction
In the high-speed world of financial markets, two strategies stand out for traders who thrive on quick decisions and rapid results: Intraday Scalping and Momentum Trading.
While both are short-term trading styles, they differ in execution speed, trade duration, and the logic behind entries and exits.
Intraday Scalping focuses on capturing tiny price movements — sometimes just a few points — multiple times throughout the trading session.
Momentum Trading aims to ride significant price moves caused by strong buying or selling pressure, often holding positions for minutes to hours until the trend exhausts.
In both strategies:
Speed is critical.
Precision is non-negotiable.
Discipline is the backbone.
2. The Core Concepts
2.1 Intraday Scalping
Scalping is like market sniping — taking small, precise shots. The goal is not to hit a home run but to consistently hit singles that add up.
Key traits:
Very short holding times (seconds to a few minutes).
Multiple trades per day (5–50+ depending on style).
Targets are small (0.1%–0.5% price move per trade).
Relies on high liquidity and tight bid-ask spreads.
Example:
Stock XYZ is trading at ₹100.25/₹100.30.
Scalper buys at ₹100.30.
Price ticks up to ₹100.40 in 30 seconds.
Exit at ₹100.40 — profit of ₹0.10 per share.
Tools used:
Level 2 order book (market depth).
Time & sales tape.
Tick charts (1-min, 15-sec).
Volume profile for micro-trends.
2.2 Momentum Trading
Momentum trading is like surfing a wave. Once a strong move starts (due to news, earnings, sector activity, or breakout), momentum traders jump in to ride the surge until it slows.
Key traits:
Holding time is longer than scalping (minutes to hours).
Focus on directional moves with high relative volume.
Larger price targets (0.5%–3% or more per trade).
Relies on trend continuation until exhaustion.
Example:
Stock ABC breaks resistance at ₹250 on high volume after earnings.
Trader buys at ₹252 expecting further upside.
Price runs to ₹260 before showing weakness.
Exit at ₹259 — profit of ₹7 per share.
Tools used:
1-min to 15-min charts.
Moving averages for trend confirmation.
Relative Volume (RVOL) scanners.
Momentum oscillators like RSI, MACD.
3. Scalping vs Momentum — Quick Comparison
Feature Scalping Momentum Trading
Trade Duration Seconds to few minutes Minutes to hours
Profit Target 0.1%–0.5% 0.5%–3%+
Risk per Trade Very small Small to medium
Frequency High (10–50 trades/day) Moderate (2–10 trades/day)
Chart Timeframes Tick, 15s, 1m 1m, 5m, 15m
Market Conditions High liquidity, volatile Trending, news-driven
Mindset Ultra-fast decisions Patient within trend
4. Market Conditions Suitable for Each
Scalping Works Best When:
Market is choppy but liquid.
Bid-ask spread is tight.
Price moves in micro-waves.
There is high intraday volatility without a clear trend.
Momentum Works Best When:
Market has strong trend days.
There’s a news catalyst or earnings.
Breakouts/breakdowns occur with volume surge.
A sector rotation drives capital into specific stocks.
5. Technical Tools & Indicators
For Scalping
VWAP (Volume Weighted Average Price) – Used as a magnet for price action; scalpers fade moves away from VWAP or trade rejections.
EMA 9 & EMA 20 – For micro-trend direction.
Order Flow Analysis – Reading the tape to identify big orders.
Bollinger Bands (1-min) – Spotting overextensions.
Volume Profile – Identifying intraday support/resistance.
For Momentum
Moving Averages (EMA 20, EMA 50) – Identify trend continuation.
MACD – Confirm momentum strength.
RSI (5 or 14 period) – Spotting overbought/oversold within a trend.
Breakout Levels – Pre-marked resistance/support zones.
Relative Volume (RVOL) – Ensures trade is supported by unusual buying/selling pressure.
6. Strategies
6.1 Scalping Strategies
A) VWAP Bounce Scalping
Wait for price to pull back to VWAP after a quick move.
Enter on rejection candles.
Exit after a small bounce.
B) Breakout Scalping
Identify micro-breakouts from 1-min consolidation.
Enter just before the breakout.
Exit within seconds once target is hit.
C) Market Maker Following
Watch for large limit orders on Level 2.
Follow their buying/selling pressure.
Exit when big order disappears.
6.2 Momentum Strategies
A) News Catalyst Plays
Scan for stocks with fresh positive/negative news.
Wait for first pullback after breakout.
Ride until momentum slows.
B) Trend Continuation
Identify stock above VWAP and moving averages.
Enter on EMA 9/EMA 20 bounce.
Exit when price closes below EMA 20.
C) High Relative Volume Breakouts
Use RVOL > 2.0 filter.
Enter when volume spikes confirm breakout.
Place stop-loss just under breakout level.
7. Risk Management
Both scalping and momentum trading require tight stop-losses because small moves against you can quickly turn into bigger losses.
For Scalping:
Stop-loss: 0.1%–0.3%.
Risk per trade: ≤ 0.5% of account.
Don’t average down — cut losses immediately.
For Momentum:
Stop-loss: 0.5%–1.5%.
Risk per trade: ≤ 1% of account.
Trail stops to lock in profits.
General Rules:
Use position sizing: Risk Amount ÷ Stop Size = Position Size.
Always account for slippage.
Never risk more than you can afford to lose in a single day.
8. Trading Psychology
For Scalpers:
Stay hyper-focused. Avoid hesitation. The moment you second-guess, the trade is gone. Mental fatigue sets in quickly — take breaks.
For Momentum Traders:
Patience is key. Don’t exit too early from fear or greed. Stick to the plan and avoid chasing after missed moves.
Mind Traps to Avoid:
Overtrading.
Revenge trading after a loss.
Ignoring stop-loss because “it might bounce back.”
Letting small losses turn into big ones.
9. Examples of a Trading Day
Scalping Example
9:20 AM: Identify stock XYZ near pre-market resistance.
9:25 AM: Scalper enters on small pullback.
9:26 AM: Price moves 0.15% up — exit instantly.
Repeat 12–15 times, ending with 8 wins, 4 losses.
Momentum Example
9:25 AM: News drops on ABC Ltd.
9:30 AM: Stock gaps up 3%, breaks resistance with volume.
Buy at ₹252, hold for 20 minutes as it climbs to ₹259.
Exit when volume declines and price closes under EMA 20.
10. Common Mistakes
Scalping:
Entering in low-volume stocks → big slippage.
Over-leveraging.
Trading during low volatility periods.
Momentum:
Chasing moves without pullback.
Ignoring broader market trend.
Overstaying in trade after momentum fades.
11. Advanced Tips
Use hotkeys to speed up entries and exits.
Trade during high liquidity hours (first and last 90 minutes of market).
Combine pre-market analysis with real-time setups.
Keep a trading journal to refine entries/exits.
12. Conclusion
Intraday Scalping and Momentum Trading are high-performance trading styles that can generate consistent profits for skilled traders — but they’re not for the faint-hearted.
They require:
Quick decision-making.
Iron discipline.
Solid risk management.
Technical precision.
The golden rule is: protect your capital first, profits will follow.
In the high-speed world of financial markets, two strategies stand out for traders who thrive on quick decisions and rapid results: Intraday Scalping and Momentum Trading.
While both are short-term trading styles, they differ in execution speed, trade duration, and the logic behind entries and exits.
Intraday Scalping focuses on capturing tiny price movements — sometimes just a few points — multiple times throughout the trading session.
Momentum Trading aims to ride significant price moves caused by strong buying or selling pressure, often holding positions for minutes to hours until the trend exhausts.
In both strategies:
Speed is critical.
Precision is non-negotiable.
Discipline is the backbone.
2. The Core Concepts
2.1 Intraday Scalping
Scalping is like market sniping — taking small, precise shots. The goal is not to hit a home run but to consistently hit singles that add up.
Key traits:
Very short holding times (seconds to a few minutes).
Multiple trades per day (5–50+ depending on style).
Targets are small (0.1%–0.5% price move per trade).
Relies on high liquidity and tight bid-ask spreads.
Example:
Stock XYZ is trading at ₹100.25/₹100.30.
Scalper buys at ₹100.30.
Price ticks up to ₹100.40 in 30 seconds.
Exit at ₹100.40 — profit of ₹0.10 per share.
Tools used:
Level 2 order book (market depth).
Time & sales tape.
Tick charts (1-min, 15-sec).
Volume profile for micro-trends.
2.2 Momentum Trading
Momentum trading is like surfing a wave. Once a strong move starts (due to news, earnings, sector activity, or breakout), momentum traders jump in to ride the surge until it slows.
Key traits:
Holding time is longer than scalping (minutes to hours).
Focus on directional moves with high relative volume.
Larger price targets (0.5%–3% or more per trade).
Relies on trend continuation until exhaustion.
Example:
Stock ABC breaks resistance at ₹250 on high volume after earnings.
Trader buys at ₹252 expecting further upside.
Price runs to ₹260 before showing weakness.
Exit at ₹259 — profit of ₹7 per share.
Tools used:
1-min to 15-min charts.
Moving averages for trend confirmation.
Relative Volume (RVOL) scanners.
Momentum oscillators like RSI, MACD.
3. Scalping vs Momentum — Quick Comparison
Feature Scalping Momentum Trading
Trade Duration Seconds to few minutes Minutes to hours
Profit Target 0.1%–0.5% 0.5%–3%+
Risk per Trade Very small Small to medium
Frequency High (10–50 trades/day) Moderate (2–10 trades/day)
Chart Timeframes Tick, 15s, 1m 1m, 5m, 15m
Market Conditions High liquidity, volatile Trending, news-driven
Mindset Ultra-fast decisions Patient within trend
4. Market Conditions Suitable for Each
Scalping Works Best When:
Market is choppy but liquid.
Bid-ask spread is tight.
Price moves in micro-waves.
There is high intraday volatility without a clear trend.
Momentum Works Best When:
Market has strong trend days.
There’s a news catalyst or earnings.
Breakouts/breakdowns occur with volume surge.
A sector rotation drives capital into specific stocks.
5. Technical Tools & Indicators
For Scalping
VWAP (Volume Weighted Average Price) – Used as a magnet for price action; scalpers fade moves away from VWAP or trade rejections.
EMA 9 & EMA 20 – For micro-trend direction.
Order Flow Analysis – Reading the tape to identify big orders.
Bollinger Bands (1-min) – Spotting overextensions.
Volume Profile – Identifying intraday support/resistance.
For Momentum
Moving Averages (EMA 20, EMA 50) – Identify trend continuation.
MACD – Confirm momentum strength.
RSI (5 or 14 period) – Spotting overbought/oversold within a trend.
Breakout Levels – Pre-marked resistance/support zones.
Relative Volume (RVOL) – Ensures trade is supported by unusual buying/selling pressure.
6. Strategies
6.1 Scalping Strategies
A) VWAP Bounce Scalping
Wait for price to pull back to VWAP after a quick move.
Enter on rejection candles.
Exit after a small bounce.
B) Breakout Scalping
Identify micro-breakouts from 1-min consolidation.
Enter just before the breakout.
Exit within seconds once target is hit.
C) Market Maker Following
Watch for large limit orders on Level 2.
Follow their buying/selling pressure.
Exit when big order disappears.
6.2 Momentum Strategies
A) News Catalyst Plays
Scan for stocks with fresh positive/negative news.
Wait for first pullback after breakout.
Ride until momentum slows.
B) Trend Continuation
Identify stock above VWAP and moving averages.
Enter on EMA 9/EMA 20 bounce.
Exit when price closes below EMA 20.
C) High Relative Volume Breakouts
Use RVOL > 2.0 filter.
Enter when volume spikes confirm breakout.
Place stop-loss just under breakout level.
7. Risk Management
Both scalping and momentum trading require tight stop-losses because small moves against you can quickly turn into bigger losses.
For Scalping:
Stop-loss: 0.1%–0.3%.
Risk per trade: ≤ 0.5% of account.
Don’t average down — cut losses immediately.
For Momentum:
Stop-loss: 0.5%–1.5%.
Risk per trade: ≤ 1% of account.
Trail stops to lock in profits.
General Rules:
Use position sizing: Risk Amount ÷ Stop Size = Position Size.
Always account for slippage.
Never risk more than you can afford to lose in a single day.
8. Trading Psychology
For Scalpers:
Stay hyper-focused. Avoid hesitation. The moment you second-guess, the trade is gone. Mental fatigue sets in quickly — take breaks.
For Momentum Traders:
Patience is key. Don’t exit too early from fear or greed. Stick to the plan and avoid chasing after missed moves.
Mind Traps to Avoid:
Overtrading.
Revenge trading after a loss.
Ignoring stop-loss because “it might bounce back.”
Letting small losses turn into big ones.
9. Examples of a Trading Day
Scalping Example
9:20 AM: Identify stock XYZ near pre-market resistance.
9:25 AM: Scalper enters on small pullback.
9:26 AM: Price moves 0.15% up — exit instantly.
Repeat 12–15 times, ending with 8 wins, 4 losses.
Momentum Example
9:25 AM: News drops on ABC Ltd.
9:30 AM: Stock gaps up 3%, breaks resistance with volume.
Buy at ₹252, hold for 20 minutes as it climbs to ₹259.
Exit when volume declines and price closes under EMA 20.
10. Common Mistakes
Scalping:
Entering in low-volume stocks → big slippage.
Over-leveraging.
Trading during low volatility periods.
Momentum:
Chasing moves without pullback.
Ignoring broader market trend.
Overstaying in trade after momentum fades.
11. Advanced Tips
Use hotkeys to speed up entries and exits.
Trade during high liquidity hours (first and last 90 minutes of market).
Combine pre-market analysis with real-time setups.
Keep a trading journal to refine entries/exits.
12. Conclusion
Intraday Scalping and Momentum Trading are high-performance trading styles that can generate consistent profits for skilled traders — but they’re not for the faint-hearted.
They require:
Quick decision-making.
Iron discipline.
Solid risk management.
Technical precision.
The golden rule is: protect your capital first, profits will follow.
I built a Buy & Sell Signal Indicator with 85% accuracy.
📈 Get access via DM or
WhatsApp: wa.link/d997q0
| Email: techncialexpress@gmail.com
| Script Coder | Trader | Investor | From India
📈 Get access via DM or
WhatsApp: wa.link/d997q0
| Email: techncialexpress@gmail.com
| Script Coder | Trader | Investor | From India
Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
I built a Buy & Sell Signal Indicator with 85% accuracy.
📈 Get access via DM or
WhatsApp: wa.link/d997q0
| Email: techncialexpress@gmail.com
| Script Coder | Trader | Investor | From India
📈 Get access via DM or
WhatsApp: wa.link/d997q0
| Email: techncialexpress@gmail.com
| Script Coder | Trader | Investor | From India
Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.