What Is Scalping in Cryptocurrency Trading?
What is Scalping?
Scalping is a very well known trading strategy with short term. And we can say that is the most common short term trading strategy out of all strategies, which, includes shorter time frames, quick decision capability and a well technical analysis with some good technical tools. But scalping trading strategies is not only meant to for crypto trading but it also includes all types of other trading markets as well.
Traders Who scalp don't go for massive profits rather they give focus to gain small profits from multiple trades again and again. And small profits from this types of trade eventually gathered and became big profit with time. Well, scalp trading is best for the traders who knows good technical analysis because it is a strategy which need good knowledge of technical analysis rather than fundamental analysis.
How do scalpers make money?
Scalpers focus on various technical factors when trading, including trading volume, price action, support and resistance levels, and candlestick chart patterns. But some more commonly employed technical indicators encompass moving averages, the Relative Strength Index (RSI), Bollinger Bands, VWAP, and Fibonacci retracement tool. Additionally, some scalpers also use custom indicators to gain a competitive edge, emphasizing the importance of finding a unique advantage for trading success.
Except that scalp traders also use very small timeframes in day trading to make it more successful like 15 minutes to 1hr time frame but some people use even more smaller timeframe for it. And each individual follows their own set of tools and strategies to it by doing their own research to became more successful and profitable.
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Well however, we can say that scalping is best with your own method which you tested by using various tools and good with medium time frames as well and not suitable for very small time frame ms as they didn't represent anything and it is hard to make a decision from them.
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