$SPY 5-Minute Scalping Guide

The playbook

In and out in ~30 minutes. 2-3 plays a day is plenty. If the setup isn't clean, I pass.

🕘 When I trade

  • 9:45 to 11:30 ET. Best trends.
  • 2:00 to 3:30 ET. Afternoon push.
  • Skip 12:00 to 1:30. Chop bleeds theta.
  • Flat by 3:50. Gamma gets nasty.

📐 Levels I mark

  • VWAP. Always.
  • 9 and 21 EMA on the 5m.
  • PDH / PDL (prior day high, low).
  • PMH / PML (premarket high, low).
  • Round numbers. $1 increments on SPY.

🎯 Contracts I buy

  • 1 to 3 strikes ITM.
  • Delta 0.55 to 0.70.
  • Spread under $0.10.
  • No far OTM lottos. Theta eats them.

Pre-trade checklist

  • VIX 14 to 22. Above 25 widen stops or sit out.
  • No FOMC, CPI, or earnings in the next 15 minutes.
  • Entry candle volume at or above the 20-bar average.
  • Stop price defined before I click buy. Always.
  • Risk capped at 1 to 2% of the account on this trade.

Setups I trade

Six patterns. Each one has a trigger candle and a stop. No clean print, no trade.

1. VWAP reclaim Long

Price dips under VWAP, prints a hammer or bullish engulf, closes back above on volume. I want the reclaim candle to look obvious.

  • Entry: close of the reclaim candle.
  • Stop: under the rejection wick.

1b. VWAP rejection Short

Price pokes above VWAP, fails, prints a shooting star or bearish engulf and closes back below. Same idea, flipped.

  • Entry: close of the rejection candle.
  • Stop: above the wick.

2. 9 EMA bounce Continuation

Uptrend pulls back, wicks the 9 EMA, prints a reversal candle. I enter on the break of its high.

  • Stop: 1 to 2 ticks below the wick.

3. Double bottom / top Reversal

Two tests of the same level inside 15 to 30 minutes. I enter on the candle that confirms the hold.

  • Stop: just past the tested level.

4. Opening range break 9:45+

Mark the 9:30 to 9:45 high and low. I take the first 5m close beyond it with volume above average.

  • Stop: midpoint of the opening range.

5. Spring / upthrust Trap

Price pokes through S/R, snaps right back, traps the late crowd. I fade the failed move.

  • Stop: past the failed extreme.

6. EMA cross pop Momentum

9 EMA crosses the 21. I wait for the first pullback after the cross, then enter on continuation.

  • Strongest when the cross sits near VWAP or S/R.

Candles I watch

Color tells me the bias: green bullish, red bearish, slate indecision. I always wait for the next candle to confirm.

Bullish reversals

Hammer

Long lower wick at support. buyers reclaim.

Inverted Hammer

Long upper wick after a drop. early reversal hint.

Dragonfly Doji

Sellers absorbed at the lows. bullish bottom.

Bullish Engulfing

Green body swallows prior red. fast reversal.

Piercing Line

Red → green that closes above red's midpoint.

Bullish Harami

Tiny green inside prior red. selling exhausted.

Tweezer Bottoms

Two matching lows. support holding firm.

Morning Star

Red → indecision → big green. Strong reversal.

Three White Soldiers

3 stacked greens. sustained buying.

Abandoned Baby (Bull)

Doji gapped on both sides. rare, very strong.

Bearish reversals

Shooting Star

Long upper wick at resistance. sellers reject.

Hanging Man

Hammer-shape at top of uptrend. bearish.

Gravestone Doji

Buyers rejected at the highs. bearish top.

Bearish Engulfing

Red body swallows prior green. fast top.

Dark Cloud Cover

Green → red closes below green's midpoint.

Bearish Harami

Tiny red inside prior green. buying fading.

Tweezer Tops

Two matching highs. resistance holding.

Evening Star

Green → indecision → big red. Strong top.

Three Black Crows

3 stacked reds. sustained selling.

Abandoned Baby (Bear)

Doji gapped both sides. rare, very strong.

Continuation (hold)

Bull Marubozu

Full green body, no wicks. trail your stop.

Bear Marubozu

Full red body, no wicks. short conviction.

Rising Three Methods

Big green → 3 red pullbacks → bigger green.

Falling Three Methods

Big red → 3 green bounces → bigger red.

Pole Candle

Big-body green leg. start of a flag setup.

Inside Bar

Range fully inside prior. coil before a move.

Indecision

Doji

Open ≈ close. Wait for next candle.

Long-Legged Doji

Wide range, no winner. high indecision.

Spinning Top

Small body, equal wicks. momentum fading.

Four-Price Doji

O = H = L = C. Dead tape. no liquidity.

High Wave

Small body, very long wicks both sides. chaos.

Exit warnings (get out)

Long Wick Rejection

If next candle can't reclaim the wick. exit.

Counter Engulfing

Opposite-color engulf in your direction. exit.

Stall Candle

4+ candles in your direction → tiny body. Trim.

Climactic Bar

Huge body on a spike. likely the exhaustion top/bottom.

Indicators on my 5m

Minimal stack. VWAP plus two EMAs do most of the work. Everything else is confluence.

Moving averages

  • 9 EMA. Fast trend. Price stays one side in clean moves.
  • 21 EMA. Pullback level. Bounces confirm the trend.
  • VWAP. Institutional fair value. King of intraday levels.

RSI (14)

  • Above 70 at resistance, I look for puts. I do not chase longs.
  • Below 30 at support, I look for calls. I do not chase shorts.
  • Price makes a new high, RSI makes a lower high. Reversal warning.

Volume

  • 20-bar average overlay on the volume pane.
  • Entries need volume at or above that average.
  • Breakout on falling volume is a trap. I fade or skip it.

MACD (12, 26, 9). Optional.

  • Confluence only. Never the trigger.
  • Lags too much to lead a 5m scalp.

Risk rules

The only edge that survives a bad week. I follow these or I lose.

Position sizing

  • Risk 1 to 2% of the account per trade. No exceptions.
  • contracts = (account × risk%) / (entry − stop)
  • Never go all in on a 0DTE. They decay every minute.

Daily limits

  • Three strikes. Three losses in a row, I'm done for the day.
  • Hard daily max loss. 3 to 5% of the account.
  • Hit the goal? I close the platform.
  • Tilted? Same thing. Walk away.

How I exit

  • Scale out. ⅓ at 1R, ⅓ at 2R, trail the last ⅓.
  • Move stop to breakeven once 1R is hit.
  • 20 to 40% premium gain is a solid scalp. Take it.
  • No movement in 3 to 4 candles, the setup failed. Out.

0DTE specific risks

  • Theta. A stall vaporizes 20 to 50% in minutes.
  • Gamma. Moves get violent into the close.
  • Liquidity. Spreads widen after 3:00 ET.
  • Assignment. Close ITM positions before 3:50 ET.

Glossary

Vocabulary I expect myself to know cold.

TermMeaning
0DTEZero days to expiration. Option expires today.
ATM / ITM / OTMAt, in, or out of the money strike vs spot.
VWAPVolume weighted average price. Institutional intraday benchmark.
EMA / SMAExponential or simple moving average.
PDH / PDLPrior day high / low. Key intraday S/R.
PMH / PMLPremarket high / low.
ORBOpening range breakout. First 15 minutes.
R / R:RRisk unit. Risk to reward ratio.
S/RSupport and resistance.
IV / HVImplied or historical volatility.
VIXCBOE volatility index. Expected 30 day S&P move.
ThetaTime decay. Premium lost per day.
GammaRate of change of delta. Extreme on 0DTE.
Spring / UpthrustFalse breakdown or breakout that traps traders.