$BTC A scalping strategy is a short-term trading approach aimed at profiting from small price movements—often just a few pips or ticks—by making numerous trades throughout the day. It's commonly used in forex, stocks, and crypto markets.

Key Elements of a Scalping Strategy:

1. Time Frame:

Typically uses 1-minute or 5-minute charts.

Trades last seconds to a few minutes.

2. Instruments:

Works best on highly liquid markets like EUR/USD, BTC/USDT, or large-cap stocks.

3. Tools and Indicators:

Moving Averages (e.g., EMA 9 & 21) for trend direction.

Bollinger Bands for volatility and entry/exit zones.

RSI or Stochastic Oscillator for overbought/oversold signals.

Volume indicators to confirm momentum.

4. Entry Signal Example:

Price pulls back to the 9 EMA in an uptrend and shows a bullish candlestick pattern.

5. Exit Strategy:

Set tight take profit (TP) and stop loss (SL) – e.g., TP at 0.2%-0.5%, SL at 0.1%-0.3%.

Use trailing stop for dynamic exits.

6. Risk Management:

Risk 1% or less per trade.

Use leverage cautiously.