Scalp with RSI + VWAP

Setup

• Chart: 1-min or 3-min with VWAP anchored from open and RSI(14) in a lower pane
• Define regime: if price is above VWAP with the VWAP sloping up = uptrend day; below with negative slope = downtrend day
• The strategy trades pullbacks WITH the trend, not counter-trend

Entry

Long (uptrend day): price above VWAP but RSI dips below 40, then crosses back above. Enter on that cross-back candle. Short (downtrend day): mirror at RSI > 60 crossing back below.

Exit

Target 1: back to VWAP. Target 2: prior swing high (long) or low (short). Or take a fixed 1×ATR profit and move on — scalps are volume games.

Stop-loss

Below the pullback low (long) or above the pullback high (short). Never wider than 0.5×ATR — the whole point of scalping is tight risk.

When it works

• Trending intraday sessions with VWAP acting as clean support/resistance
• RSI dips are brief (2-5 bars) — deep sustained dips indicate a regime change
• Instruments with tight spreads and high volume around VWAP

When it fails

• Range-bound days when VWAP is a fair-value magnet, not a support — pullbacks overshoot
• RSI stays extended for many bars — trend is reversing, not pausing
• Very low volume windows (lunch) where VWAP itself becomes noisy

General trading rules that apply

Regardless of the specific setup, these apply to every strategy on this site:

• Never risk more than 2% of your account on a single trade
• Place a hard stop-loss before entering — no exceptions
• Journal every trade: setup, reason, outcome, one lesson
• After two consecutive losses, stop for the session
• Backtest and paper-trade for a month before deploying real capital