Scalping is a trading strategy that involves taking small profits on short-term price movements. This can be a very effective way to trade on Binance, as the exchange offers a wide variety of assets with high liquidity and tight spreads.
One popular scalping strategy on Binance is to use the 15-minute timeframe. This timeframe allows you to identify small price movements that you can take advantage of. To use this strategy, you will need to use a technical indicator to identify support and resistance levels. A popular indicator for scalping is the moving average convergence divergence (MACD).
The MACD is a trend-following indicator that can help you identify changes in momentum. When the MACD line crosses above the signal line, it is a signal that the market is trending upwards. You can take a long position when this happens. When the MACD line crosses below the signal line, it is a signal that the market is trending downwards. You can take a short position when this happens.
Once you have identified a support or resistance level, you can place your order on the 15-minute timeframe. Your stop loss should be placed below the support level for a long position, or above the resistance level for a short position. Your target should be a small profit, such as 10-20 pips.
Scalping can be a very profitable trading strategy, but it is important to use proper risk management. You should never risk more than 1% of your account balance on a single trade. You should also use a stop loss to limit your losses.
