Intraday trading
What is a momentum scalping strategy and what timeframes (1-min/ticks) work best?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
Momentum scalping seeks to capture small, rapid price moves in trending stocks, typically using 1-minute, tick, or time-based charts to time entries and exits within seconds to minutes.
How it works
Scalpers rely on tight spreads, high liquidity, and fast order execution; many use 1-tick or 100-tick charts to filter noise during fast-moving sessions.
An example
A scalper might buy a breaking-out stock at $15.10 and sell at $15.25, holding the position for under a minute, repeating the process many times a day.
Risk & limitations
This strategy requires low-latency execution and incurs significant transaction costs; frequent trading can lead to the Pattern Day Trader designation and magnified losses.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.