You should approach scorpion by block dashing.
Scorpion's mixup game is rather poor. He's a character that can do big damage, around 38%+ But usually that can only happen if you make a mistake, and he's punishing you. Just keep stand blocking and you should be alright. If he tries his's leg takedown special move, its high risk and low reward. So its a gamble in your favour. For all those times you get hit by it, when you low block once and punish with B+3, dash, 2, 1, F+2, dash, etc. to take out 30%, you've just made up for the three times you fell for the move.
Some scorpion's like to get into a hellfire pattern, especially on your wake up. Took me a while to figure this out, but you have to ocassionally jump or flip kick on your wake up. Watch out for spear, in case, he tries to mix it up. To avoid hellfire, you need to keep scorpion within jump distance, and watch for the slow hellfire startup. That's your cue, to answer with a jumpin punch, into F+4 (axe kick), dash, 2, 1, F+2, etc to take out 30%+. Or alternatively, use the armour on enhanced shadow kick to break through, since it goes near full screen.
Air to air, scorpion has his air throw, and often scorpion will try to air teleport you, if your also in the air. This can lead to big damage on his part. His teleport is a much better move, high risk and high reward. When he lands it, he gets a combo. On block, your best line, is the B+3 launcher, as it has good startup, into dash, 2, 1, F+2 or alternate juggles such as 2, 1, dash 2,1, 4, 4, nut punch etc.
Scorpion's best move is his enhanced spear. Low risk for counter attacks and high reward, although unsafe on block. It will plow through whatever your doing if your not cafeful.
Up close, you can just handle him, with combinations of 2, 1 or F+3,2 or F+3, 3 pressure, till he goes to the corner or chips to death or decides to teleport out, watch for it, and punish. But keep in mind, enhanced teleport is safe, and you can't punish after it, especially if scorpion goes into his 1, 1, 1 block string. Scorpion's teleport, enhanced teleport, X-Ray, are all good cues for Cage to activate X-Ray.
If in the event, you mess up, almost always use a breaker, as Scorpion does big damage. Air breaker is prefered since you recover quicker, for example, when scorpion goes into his B+2 overhead launcher or neutral jump punch during his combo.
