1. Pair Selection
Select highly liquid and volatile trading pairs to ensure optimal trade execution and sufficient price movement:
BTC/USDT
ETH/USDT
SOL/USDT
BNB/USDT
Or any trending altcoins exhibiting a 24-hour trading volume exceeding $500 million
2. Chart Configuration:
Recommended chart settings for effective market analysis:
Timeframes:
5-minute and 15-minute charts for trade entries
1-hour chart for overall trend confirmation
Technical Indicators:
Exponential Moving Averages (EMA): EMA 20, EMA 50, EMA 200
Relative Strength Index (RSI): Set to 14
Volume indicator
3. Entry Criteria:
Trend Bias:
Bullish Bias: Price trading above the EMA 200
Bearish Bias: Price trading below the EMA 200
Scalping Pullback Setup:
Confirm the prevailing trend direction on the 1-hour chart
Await a price pullback to the EMA 20 or EMA 50 on the 5-minute chart
Verify RSI behavior:
A bounce from 30 suggests a potential buy opportunity
A rejection from 70 indicates a potential sell opportunity
Enter the trade upon the closure of a confirmation candle (e.g., bullish/bearish engulfing pattern)
4. Risk and Profit Management:
Maximum Leverage: 5x for futures trading (use spot trading if risk-averse)
Stop-Loss: 0.5%–1% of account capital per trade
Profit Target: 1%–3% price movement per trade
Daily Profit Objective: Cease trading upon achieving $10–$100 profit
Trailing Stop: Activate once the trade reaches 1.5x the risked amount
5. Optimal Trading Sessions:
London Session: 12:00 PM – 4:00 PM PKT
US Session: 6:00 PM – 10:00 PM PKT
It is advisable to avoid trading during low-volume periods to mitigate the risk of erratic price movements and poor liquidity.
Illustrative Trade Example:
Pair: BTC/USDT Futures, 5-minute chart
Conditions:
Price above EMA 200
RSI dips to 35 and begins to recover
Enter a long position when a bullish engulfing candle closes above EMA 20
Stop-Loss: Positioned below the most recent swing low
Take-Profit: Target a 1.5% move or trail the stop once 1% profit is secured
Additional Alpha-Generating Tips for Binance:
Monitor order book depth and volume spikes for early market moves
Regularly check Binance’s Top Gainers/Losers list to identify high-volatility assets
Prefer limit orders for precise trade entries and exits, minimizing slippage