VWAP (Volume Weighted Average Price) scalping uses the VWAP line and its standard deviation bands as dynamic support/resistance for intraday scalp entries. Institutional algorithms weight their execution toward VWAP, making it a self-fulfilling level. Price below VWAP = short bias; above = long bias.
VWAP resets daily (session-specific), Standard deviation bands (1σ, 2σ, 3σ) act as dynamic S/R, Mean reversion: price tends to return to VWAP, Anchored VWAP from significant events for multi-day context, VWAP slope indicates intraday trend
Long entries: price pulls back to rising VWAP, holding above with volume. Short entries: price rallies to falling VWAP, rejected below with volume. Fade moves to ±2σ bands back toward VWAP. Open drive away from VWAP: trail entries in trend direction.
Mean reversion target: VWAP from the bands. Trend target: opposing band. Stop: beyond VWAP (or beyond the recent swing against you). Close all positions by session end — VWAP is an intraday indicator.
1M, 3M, 5M for entries with VWAP calculated on the session
VWAP is most reliable in liquid instruments (ES, NQ, SPY, major forex pairs). On low-volume instruments, VWAP becomes less meaningful because fewer institutional algorithms are using it.
The Bollinger squeeze scalp identifies periods when Bollinger Bands contract to their narrowest width, indicating extremely low volatility that typically precedes a sharp expansion. By measuring the bandwidth or using a Keltner Channel inside the Bollinger Bands as a squeeze indicator, traders anticipate the explosive breakout and scalp the initial directional move that follows the compression.
Spread capture (also called 'scalp the spread') involves placing limit orders on both sides of the bid-ask spread to earn the spread difference. In liquid markets with tight spreads, high-frequency traders and skilled scalpers use this technique to accumulate small profits from market-making activity. This requires the fastest execution and minimal latency.
Momentum scalping captures the initial burst of a move — breakouts, gap fills, news reactions, and session opens. Rather than fading moves or capturing spreads, momentum scalpers jump on explosive moves early and ride them for 5-30 ticks before the momentum fades. Speed of entry and aggressive stop management are critical.
Session transition scalping exploits the volatility and liquidity shifts that occur when one major trading session hands off to the next. The overlaps between the Asian-to-London and London-to-New York sessions create predictable patterns of expansion, reversal, and liquidity grabs as new participants enter and reprice the market based on their regional order flow and sentiment.