Moving Average Scalping Strategy

A simple scalping strategy + stock scanner →

Hey there đŸ‘‹đŸŒ

Today in less than 5 minutes:

1) Why scalping is not for everyone
2) A moving average + RSI scalping strategy
3) Example + stock scanner

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Scalping - not for everyone 😬

Scalping is like trying to catch fish with your bare hands in a fast-moving river. Just as a skilled fisherman can snatch fish from the water with split-second timing, a scalper aims to capture small price movements in the market within seconds or minutes.

If you’re new to the markets, get a headstart into the world of scalping with Mukta Dhamankar’s Basics of Scalping Course.

Much like the river's ever-changing flow, the market can be unpredictable. Successful scalping requires the right strategy, risk management, and execution. Today, we’re covering a simple, yet effective scalping strategy that involves using a moving average crossover and RSI ↓

MA + RSI Scalping Strategy

1) Defining your universe

As explained above, scalping is suitable for stocks and indices where there is:
- Enough volatility to benefit from quick moves
- A large quantity of shares are traded

Taking these into consideration, trading in major indices like the NIFTY, BANKNIFTY, NIFTYMIDCAP50, and stocks from the NSE200 universe are ideal.

2) How to enter & exit

Here’s how we will enter and exit a trade using this strategy using a 5-minute timeframe:

BULLISH SCALP

1) Wait for the 9-period EMA to cross above the 9-period SMA. Give preference to a fresh crossover over just the existence of the EMA being above the SMA.

2) Set the RSI to a 28-period lookback period. The RSI should be above 65.

3) Hold on to the trade until higher highs & higher lows are getting formed.

4) The SMA can act as a stop loss for the trade.

BEARISH SCALP

1) Wait for the 9-period EMA to cross below the 9-period SMA. Give preference to a fresh crossover over just the existence of the EMA being below the SMA.

2) Set the RSI to a 28-period lookback period. The RSI should be below 35.

3) Hold on to the trade until lower highs & lower lows are getting formed.

4) The SMA can act as a stop loss for the trade.

This strategy works well in the 1-minute, 2-minute, and 3-minute timeframes as well.

You know how to enter and exit a stock for a successful scalp now, but where will you find such stocks? NSE200 is a large enough universe to be able to scan each stock


Hence we built a scanner that would shortlist such stocks for you, read on to get it!

Learn ace scalper Sivakumar Jayachandran’s 2-candle theory, an excellent scalping strategy for consistent profits, in his Options Scalping Course. There’s currently a 50% OFF on it currently, so HURRY â°

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Example + Stock Scanner

We looked for stocks with the above criteria and found the following:

TATAMOTORS, 5M

On 2nd March 2024, TATAMOTORS (Tata Motors Ltd.) gave an excellent scalping opportunity. If you had followed this strategy to the T, you could have made a quick 1% within just 45 minutes đŸ€Ż

Stocks where you can apply this strategy

We created a scanner that will help you shortlist stocks regularly in a 5-minute timeframe as per the criteria of the strategy. You can also tweak it per your style, or add other parameters if needed!

Note that:
- You would have to run this scanner every 5 minutes (or any other timeframe you choose) to check for new stocks. Consider getting a premium version of the software for generating alerts.

Note that we are not SEBI-registered advisors and none of the above stocks are intended as recommendations. Do your own due diligence before trading/investing.

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Keep scalping,
Upsurge.club

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