Hello friends!
In this article we will look at the best scalping strategies.
Scalping is very short trades on the minimum price movement of an asset. The duration of stay in the position is no longer than a few minutes.
The advantages of this method include quick earnings and a large number of transactions. Due to the nature of scalping, trading is possible on any market and any asset.
The main disadvantage is the psychological pressure due to the huge emotional costs. Also, the large amount of time required for trading acts as a limitation. Most often, scalpers move into the category of other, more long-term traders.
Let's look at three basic strategies you can use.
The simplest one is working in a channel. We find moments when the price moves in a certain narrow channel on the 1st and 5th timeframes. We enter at the resistance level and exit at the support. And so on, as long as the market allows.
The most common is a level breakdown. The entry point is found using the glass. The principle of operation is no different from breakout in other types of trading. The price approaches the local level, is in accumulation, and at the breakout we enter a trade.
Practicing rollback movements. There is an accumulation, the price breaks out, and at its peak we enter into a trade, trading off the pullback.
Example of a real deal. We are working on a level breakout. The entry is made through the glass when activity begins to appear.
Another deal. TVX is searched after the impulse. The price moves 25% per day, which is strong for this instrument and an argument for correction. The price goes up on impulse, hits several limits and rolls back down, where the profit is recorded.
Another deal is working out in the hallway. The main thing in this method is to find a narrow stable corridor and trade in it.
Happy trading!