2021-11-13 00:09:39
Types of Crypto Scalping StrategiesScalp trading or scalping is a short-term trading strategy that a trader adopts to make frequent small profits from small price movement each day. With small profits from each trade adds up, it can generate a substantial amount over time.
Crypto Range TradingThe term “range” means a price movement between two consistent price levels, high and low, within a certain period of time. When crypto traders are range trading, they tend to go in both long and short at different times, depending on the price’s position within the range.
Bid-Ask SpreadWide Bid-Ask Spread:When this happens, the asking price will be higher, and the bid price is significantly lower than usual. The probable cause of this scenario is that there are more buyers than sellers. Naturally, prices will surge, causing crypto scalpers to sell.
Narrow Bid-Ask Spread:When buyers outnumber sellers, the asking price will be lower, and the bid will be higher than usual. Scalpers deploy this strategy to expedite the buy-in frequency, hence balancing out the selling pressure.
Price ActionThis method is based on a study of the asset’s price movement. A trader needs to see it and interpret it. Scalping the markets with price action doesn’t differ much from trading with other price action strategies.
Best Time Frame for ScalpingThe scalping time frame is how you achieve “trading velocity,” or the number of trades made. Ideally, the best time frame for scalping should range between 5- to 30-minute charts. The smaller the time frame, the greater the number of possible trade setups. Note that this should depend entirely on the strategy you choose for scalping.
@CryptoGold_News
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