What is the scalping strategy?

Scalping is a short-term trading strategy aimed at achieving small and frequent profits from minor price movements throughout the day. The trader enters and exits the market quickly, often holding the position for only seconds or minutes.

⏱️ Advantages and Characteristics:

- Trade Duration: Very short (from seconds to minutes).

- Number of Trades: Many throughout the day.

- Goal: Accumulate small profits over a large number of trades.

- Tools: Heavily relies on technical analysis and real-time data.

⚙️ Popular Scalping Strategies:

1. Parabolic SAR:

Used to identify reversal points in the trend. When the dots appear below the price, it is a buy signal; above the price, it is a sell signal.

2. Stochastic Indicator:

Used to determine if the financial asset is in an overbought or oversold condition, providing quick reversal signals.

3. Breakout Scalping:

Relies on entering when the price breaks through resistance or support levels, often during high liquidity times.

4. News Scalping:

Depends on the volatility caused by economic news or sudden announcements. Requires fast execution and strong risk control.

📌 Important Tips:

- Best to trade during peak hours (like market opening).

- Use tight spreads to reduce costs.

- Set stop-loss orders accurately to avoid large losses.