Scalp Trading

Scalp trade is a method of trading on cryptocurrency exchanges or other exchanges using short time intervals. Traders using this method trade in smaller time frames. Example: such as 1, minute, 5 minutes. They make small profits from their trades in these short time intervals. However, since these transactions take place in short time intervals, their total profits are higher.

Scalping traders should be more careful when trading. Because the time intervals are shorter and the profits from a trade are low, They should fine-tune their transaction fees and stop-loss.

The main goal in scalping trade is to make a profit quickly by buying and selling instantaneously. This purpose is the same in almost all scalping methods.Those who trade with this method are called "Scalper".

The factors that investors who want to perform scalping should pay attention to:

• It should know the appropriate spread values well.
• Must have a good technical analysis knowledge.
• It must have sufficient information about the market in which it will be traded and must be constantly monitored.
• They should know how to use stop-loss in their trade and should not be greedy.

A Scalper who pays attention to these factors has the chance to earn more from other trades in a short time with less profit. However, if he does not do his technical analysis well and does not know when to exit the position, it will cause more losses.

Finger-trap Scalping Trade

This trading method is a Scalping technique where we use the EMA indicator. These are EMA8 and EMA 34.

If we need to briefly explain the EMA;

EMA: This indicator, which stands for "Exponential Moving Average", is called the moving average indicator. The EMA is an indicator that helps us to see the ever-changing prices and price trends more clearly.

When the EMA8 and EMA34 lines we have determined in EMA intersect, it gives us a buy-sell signal. Sell signal where EMA8 indicator cuts EMA34 from top to bottom, The fact that EMA8 indicator cuts EMA34 from bottom to top gives a buy signal.

Finger-trap Scalping Trade hands-on demonstration

I will do this in the Tradingview application. In the Tradingview application, PaperTrading defines a balance of 100,000 dollars with the demo account. If you want, you can increase or decrease this value.

ETC/USD

Step 1

• First, we open our 1-hour chart for ETH / USD.
• Then we add our EMA8 (red) and EMA34 (blue) indicators.
• Our aim is to determine the direction of the trend and to see the support-resistance points more easily.
• After determining whether the trend is bullish or bearish, we move on to our 5-minute chart.
  

In this graphic, we see a bullish turning into bearish. During this change, we draw our resistance and support.

Step 2

On the 5-minute chart, we see that EMA8 is below EMA34. So we will wait for EMA8 to cut EMA34 from bottom to top. This will give us a Bullish signal. Normally, this bullish will not be a very long bullish as our Trend is bearish Trend. Therefore, when we receive the trading signal, we will have to enter and exit quickly. We are waiting for the candle close before entering the trade. Normally, the signal has not yet arrived, but I open a position in a small trading range because the market has turned over a support I have determined here. After entering my stop-loss and take profit values, I open the trade. My loss seemed a bit too high as I couldn't set the "stop-loss" correctly. However, I ended the trade when it reached the level of +3 dollars by waiting a little longer.

Step 3

Then I wait a while and see that the support value I had previously determined has been exceeded. We see that EMA8 and EMA 34 are getting closer to each other. This gives us a buy signal and I enter the trade.

In this trade, I close the position around +19 dollars without waiting.

BTC/USD

Step 1

Again, we open our 1 hour chart. We determine the direction of our trend and our support resistance points. Here we see that BTC is in a bearish trend. However, it tried the resistance point we drew 2 times and it fell back to the support point. We can understand this as EMA34 is above EMA8.

Step 2

Moving to our 5-minute chart, we see that EMA8 is preparing to cut the EMA34 from the bottom to the top. This signals us that we are going to do a buy.

Step 3

After waiting for a while, we see that EMA8 started to cut EMA34. At first, I am losing $ -42 as I entered the transaction without waiting for the candle's close. It was a wrong move and I had to wait for the candle opening. After waiting a few pips after the candle opens, I enter the trade again. I made $ 1 profit by closing my second trade a bit early.

Step 4

then I saw the rise continued and I made one more trade.

I closed my position when I reached the level of +17 dollars without waiting for a long time in this trade.

Conslusion

• In this lesson, we learned Scalping trading and finger-trap Scalping method in detail.
• With the scalping trading method, I saw that we can easily make a profit as long as we do not go beyond certain rules.
• Although these profit levels are low, I have found that we can earn more than other trading methods thanks to our total trade during the day.
• However, I have learned that we can suddenly incur huge losses in trades we make without paying attention to these rules and stop-loss settings.

Thanks to Steemit Crypto Academy professors in cryptocurrency exchanges, I learn a new knowledge and strategy every day. In this lesson, no matter how hard I had to practice what we learned, the lesson was very fun and beautiful.

Thank you to professor @yohan2on for this lesson. I look forward to his next lesson.

CC: @yohan2on