The Best Scalping Strategies: How To Use Scalping Successfully In Trading!
As with all others Bitcoin News.one Articles, we do not make any investment proposals here either. Investing in cryptocurrency is highly volatile, which can potentially lead to losses. This article only serves to clarify the term scalping and thus only represents market change scenarios.
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Where can I use crypto scalping strategies?
Before we get into the topic of scalping, we suggest that you check out ours Fibonacci Retracement and Elliot Wave Theory read. These two trading methods will give you a better understanding of how support / resistance levels form so that you can accurately identify areas of trade and trade accordingly.
Price peaks create scalping opportunities
There is a reason when and why price increases occur.
The problem is that the price of coins doesn't go up in a linear fashion unless big news comes out. The price remains subdued until the market has enough technical strength to “test” a higher range. Impulsive price increases only come from really amazing press.
You now know that every purchase of a coin drives the price up. If the Market Maker recognizes that everyone is suddenly buying coins, the sales orders are withdrawn. Suddenly the price soars up at an unpredictable rate.
Use price fluctuations to make profits!
In most cases the first resistance is broken and the price is exceeded from there. This level will be a support up the leg during the third Elliot wave. If you buy coins before the breakthrough, your position can have an incredible risk / reward risk if you use a tight stop.
Use of scalping profits to generate further profits
Assuming you know how to represent resistors, treat them as selling points. However, if the price goes up literally within minutes and you know it will be even higher in the next few days, sell your coins and buy a pull back again to add 10-20% to your account.
Understand how news affects trading activity
Remember that the market moves irrationally when unexpected news is released. Be on the ball if you want to actively daytrade crypto. These moves are simple 5-10% increases in your capital. The trick is to sell early if the “news pump” doesn't raise prices.
Don't shop after the price has risen 10% in a matter of minutes unless the news is literally insane (e.g. when Verge's PornHub announcement came as a surprise).
Market capitalization factor when predicting spike potential
A final aspect to observe is the market capitalization of a coin, which increases in price. If it's a low capitalization with good news, the volatility and upside potential will be much greater. If the market cap is high, good news can also offer minimal price support. In fact, some large coin holders treat these moments as a point in time to sell stocks to medium-sized whales that can prevent / suppress a rise in price.
Buy a coin before the news
Once news breaks a coin price, the coin typically has immediate buying pressure. The question is whether the whales will support the price with some volume and real, large buy orders.
Even if the big players plan to push the price down, the market tends to run up to see how many people are buying the hype. If you are focused and trading crypto many hours a day, you will hear these stories a few times a week. Buy right away when the situation seems good enough to you, especially if you are trading with Binance or any other low-fee crypto exchange.
Even if the news isn't enough, it's a quick 3-4% gain if you get in early.
For this scalping, it's almost always safer to trade coins with sustainable market capitalizations of $ 75 million to $ 150 million or higher. A coin with a lower market capitalization is pumped faster with any real volume and does not always have real buying support, which is a worse risk.
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Aarbitrage message-based price spikes
Suppose you have money on it Bittrex and monitor the actions at Binance all day. The moment a coin is pumped onto Binance, you can check the price on Bittrex. It often happens that the coins are 10-20% cheaper at an exchange than at the pumping exchange. You can buy deeper and hold on to a dip when it happens or ride a strong wave up when price rises and stock prices start to sync.
You can take advantage of this method as you see fit: but stick to your stops so you don't suffer any real loss.
Track price increases in real time
You can use the Price Radar tool from Coinzaa to keep track of recent price movements. Watch out for double digit price changes in the last hour, especially if you catch them in the first 10-20 minutes these specific arbitrage moments are very profitable.
Here's a look at the tool we're talking about ...
Coinzaa also offers an arbitrage tool that tracks prices between multiple exchanges to help identify large spreads to trade. This tool is not very efficient; we recommend looking for hot coins and then I coinmarketcap.co to visit to see the price difference between the exchanges.
Please consider when deciding on the "current price" only the high-volume crypto trading platforms like Binance and Bitfinex.
Telegram groups & other social areas
During the Telegram app Lots of speculators, altcoin project team members and market makers hanging around. Lots of pump-and-dump people are also represented in certain altcoin telegram groups. There is a chat group for most altcoins.
Why Should You Care About Altcoin Telegram Groups?
Look out for signs of momentum behind the community or for special announcements from team members. Remove the channel if there's nothing good, but keep an eye out for new news on your Telegram app if there's a potential press release that could cause the price to break out.
The secret value for many day traders is that team members sometimes spoil chatters. Announcements are often made in advance in a group's Telegramchat. Also, when an announcement goes live, the moderators are usually quick to set the announcement so it's easy to spot. For example, some news was first announced on Telegram when Verge went through all the hype leading up to the announcement of their PornHub partnership.
The following platforms can predict coin scalpings: Reddit, Slack, Twitter, Discord, Telegram and many more. Reddit is a particularly strong indicator; unless hundreds or thousands of subscribers are online at the same time, the project is likely to have no real interest.
Would you like more tips on how to optimize crypto day trading? Read our Crypto Day Trading Guideto understand how bitcoin's market sentiment and movement can affect the price direction of altcoins!
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