#ScalpingStrategy 🔍 Core Principles of Scalping
Principle Description
Speed & Volume Many small trades with short holding times.
Small Profits, High Frequency Aim for 0.1%–0.5% profit per trade.
Low Exposure Positions are held for seconds to minutes.
Tight Spreads Best done on assets with low bid-ask spreads.
Liquidity is Key Focus on high-volume, liquid markets (e.g. BTC/USDT, EUR/USD).
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🧠 Popular Scalping Techniques
1. Moving Average Crossover
Use short (e.g. 9 EMA) and longer (e.g. 21 EMA) averages.
Buy on bullish cross, sell on bearish cross.
2. Order Book & Tape Reading
Monitor large orders and real-time trade flow to spot momentum shifts.
3. RSI Scalping
RSI < 30: Potential buy.
RSI > 70: Potential sell.
Use on 1-5 minute charts.
4. Breakout Scalping
Identify consolidation zones.
Enter on breakout with stop just inside range.
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📈 Best Timeframes
1-Minute (M1) or 5-Minute (M5) charts.
Some use Tick Charts for even faster signals.
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⚙️ Tools & Indicators
EMA 9, EMA 21
Volume
MACD or Stochastic
VWAP (Volume Weighted Average Price)
Order Book/Depth Chart
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⚠️ Risk Management Tips
Tip Why It Matters
Set tight stop-losses Protects from large losses on fast moves.
Use low leverage (1–5x) Reduces risk of liquidation.
Avoid major news times Can cause unpredictable spikes.
Don’t overtrade Wait for clean setups.
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💼 Example Setup (Crypto)
Chart: 1-Minute BTC/USDT
Indicators: EMA 9/21, VWAP, RSI
Rules:
Buy: EMA9 crosses above EMA21 above VWAP, RSI near 30–50.
Sell: EMA9 crosses below EMA21 or RSI > 70.
Target: 0.2%–0.5%
Stop-loss: 0.1%–0.3%