#ScalpingStrategy

🕒 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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✅ Why It Works (in 2025)

1. Ultra‑quick 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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🧭 Step-by-Step Scalping Tutorial

1. Choose Your Market

• Prefer high-liquidity assets: major forex pairs, blue‑chip stocks, and top crypto pairs like BTC or ETH .

2. Pick a Timeframe

• Use 1‑ to 5‑minute charts for maximum signal frequency.

3. Set Your Indicators

• Positive signal combo:

• MACD crossover + RSI above 50, or RSI exiting over‑sold/over‑bought .

• 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 tight—just outside recent wick or swing high/low, matching profit level (1:1 RR)   .

6. Position Sizing & Risk

• Trade small relative to account size.

• Adjust size based on volatility—use dynamic sizing .

• Never risk more than 1–2% per trade.

• Consider transaction costs—scalpers 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.