#ScalpingStrategy
đ What Is Scalping?
Scalping is a high-frequency trading technique where traders aim to profit from tiny price movements, typically entering and exiting positions within seconds or minutes, and executing dozens to hundreds of trades daily ďżź.
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â Why It Works (in 2025)
1. Ultraâquick executions: Thanks to ultra-low latency brokers, APIs, and trading bots .
2. Tight spreads & high liquidity: Especially in forex, large stocks, and major crypto (e.g., BTC/USDT).
3. Advanced indicators & automation: Traders apply tools like MACD, RSI, Stochastics, EMAs, VWAP, Bollinger Bands, and scale using automated setups with alerts or scripts.
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đ§ Step-by-Step Scalping Tutorial
1. Choose Your Market
⢠Prefer high-liquidity assets: major forex pairs, blueâchip stocks, and top crypto pairs like BTC or ETH .
2. Pick a Timeframe
⢠Use 1â to 5âminute charts for maximum signal frequency.
3. Set Your Indicators
⢠Positive signal combo:
⢠MACD crossover + RSI above 50, or RSI exiting overâsold/overâbought .
⢠Add Stochastic (14,3,3) for extra entry filter.
4. Entry Rules
⢠Long trade:
⢠MACD crosses above signal
⢠RSI > 50
⢠Stochastic %K crosses above %D
⢠Short trade: Reverse signals apply.
5. Exit Rules
⢠Take profit at small target (e.g., +0.1% to +0.5%).
⢠Stop-loss tightâjust outside recent wick or swing high/low, matching profit level (1:1 RR) ďżź ďżź ďżź.
6. Position Sizing & Risk
⢠Trade small relative to account size.
⢠Adjust size based on volatilityâuse dynamic sizing ďżź.
⢠Never risk more than 1â2% per trade.
⢠Consider transaction costsâscalpers target tight spreads to offset fees.
7. Automation & Tools
⢠Use bots or scripts (e.g., TradingView alerts, QuantConnect, MetaTrader, Bybit API) to automate entries, exits, stop-loss, and take-profit.
⢠Backtest your setup on historical data before live execution.