Course Content
What Is Scalping Trading in Cryptocurrency?
Scalping is a trading style for adrenaline junkies. Do you find yourself staring at 1-minute charts? Do you like to get in and out of trades faster than an investor can open an earnings report? Scalping might be the strategy to consider. Scalp traders aim to harvest profits from small price moves. Their goal isn’t to make a lot of profit with each trade, but small profits over and over again. If they do it well, they’ll grow their trading account over time. Scalp traders often use leverage and tight stop-losses. Do you want to learn how scalp traders practice their craft? Read on. Contents Introduction What is scalping? How do scalpers make money? Scalping trading strategies Should I start scalp trading? Closing thoughts
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What Is Scalping Trading in Cryptocurrency?
About Lesson
So, what are the technical factors that scalpers consider? Trading volume, price action, support and resistance levels, candlestick chart patterns are all commonly used to identify trade setups. Some of the most common technical indicators used by scalp traders are moving averages, the Relative Strength Index (RSI), Bollinger Bands, the VWAP, and the Fibonacci retracement tool
Many scalpers will also use real-time order book analysis, volume profile, open interest, and other complex indicators. In addition, many scalpers will create their custom indicators to give them an edge over the market. As with any other trading strategy, finding a unique advantage over the market is paramount for success.

Scalping is about finding small opportunities in the market and exploiting them. As these strategies can easily become unprofitable once known by the general public, scalp traders can be quite secretive about their individual trading suite. This is why it’s important to create and test your own strategy.

As we’ve discussed, scalpers will typically trade lower time frames. These are intraday charts, which may be the 1-hour, 15-minute, 5-minute, or even the 1-minute chart. Some scalp traders may even look at time frames of less than a minute.

However, with these time frames, we start to enter the realm of high-frequency trading bots, which may not be reasonable for humans to look at. While machines can quickly process a lot of data, most humans aren’t really at their best when staring at 15-second charts.

Here’s something else to consider. We know that high timeframe signals and levels are generally more reliable than lower time frame signals. This is why most scalpers will still look at the high time frame market structure first. Why? They outline the important high time frame levels first and then zoom in to look for the scalp trading setups. This shows that having a high time frame view of the market structure can be very helpful, even when it comes to shorter-term trades.

Even so, trading and investment strategies can differ substantially between different traders. There aren’t strict rules to scalping, but there are guidelines that you can consider when setting your own rules.