A SIMPLE TRADING STRATEGY

When it comes to scalping in crypto, a simple yet effective approach involves using the VWAP (Volume Weighted Average Price) as your core guide, especially on low timeframes like the 1-minute or 3-minute chart.

Think of VWAP as a dynamic line that shows the average price weighted by volume throughout the trading day—it acts like a magnet where price often reacts. Start by identifying key gaps between price and VWAP—these gaps often signal overextended moves where price is likely to revert or pause.

The ideal setup is when price moves far away from the VWAP, leaving a noticeable gap, then prints a rejection candle or signs of exhaustion. For example, if price surges well above VWAP and forms a strong wick to the upside while volume declines, it can hint at a short-term reversal opportunity for a quick scalp back toward VWAP.

Conversely, when price is sharply below VWAP and begins forming higher lows with decreasing selling volume, it may signal a bounce. Focus on confluence—not just the gap, but how the price behaves around previous reaction zones or micro-support/resistance.

Tight risk management is crucial; set stop-loss just above the rejection wick for shorts or below the bounce wick for longs. Your target should be conservative: either a retest of VWAP or the most recent range midline.

This strategy works best in ranging or fading conditions, not during high-trend news spikes. As you get more comfortable, start looking for multiple touches of VWAP and how price behaves each time—these interactions reveal hidden momentum and give clues about when a real shift is happening versus a fakeout. Be patient, be precise, and let the gap between price and VWAP be your edge.
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