STEEM/USDT Scalping- Mastering Short Term Trading Strategies

Hello friends and I gladly welcome you all to my article in the SLC:23/W4 in the great work, I would try my best to properly be thorough in my explanation.

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Question 1: Understanding Scalping in STEEM/USDT

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Scalping is a trading scheme where trades are placed to take profits from price movement in the trading market. In other words, it is an opportunistic trading activity which trades vent in to the market when there is such opportunity to take profits off the market. The decisively pick profits from small opportunity that shows up eventually in comparison to the swing traders who hold on for hours or days. These traders observe patiently the market before taking the bold step of diving into the trade.

Moreso, Scalping STEEM/USDT comes with special trading volumes to allow fast entry and exit of the trade setup before slippage. STEEM/USDT has high tendency of liquidity, therefore for scalp trading to take place the volume must be relatively high for less risk against reward ratio and to this regard if trading volume is low high risk agent reward ratio comes through thus causing tendencies of loss.

Scalping is all about careful study and beautiful setup. It is crucial to know that indicators and candle stick patterns acts as double confirmation in scalping, thus strong combination of indicators creates room for a more effective and highly stress free method of making profits while scalping.

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Question 2: Best Indicators for Scalping STEEM/USDT

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There are special indicators for scalping STEEM/USDT while relying on technical indicators to help, the first would be Relative Strength Index [RSI] which measures speed of change of price movement on a special scale of 0-100. There is a relative yardstick to measure overbought and oversold zones. The overbought zone is relatively above 30 on the RSI oscillator index scale. It definitely aids scalpers to have easier trading experience.

Relative Strength Index

Moving Average smoothens the price data, giving a definite authentic understanding of the market structure and it makes one know the trend of the market generally and due direction the market is touring towards. It cushions the confirmation of the price action as a valuable confirmation for trade entry and exist respectively.

Moving Average

Moving Average Convergence Divergence (MACD) compares two moving averages to detect changes in market trend crossing MACD line indicate bullish shift, while downward crossover can suggest bearish move. It can particularly help scalpers who need to react to small price fluctuation.

MACD

Bollinger Bands:
They help scalpers identify market volatility, these bands which widens when the market is highly volatile contracting during period of low volatility. When price touch lower band, it gives signal of oversold condition and buying tendencies, thus touching upper band shows assets is overbought at time and ready to sell.

Bollinger Bands

Thus combining indicators relatively and not respectively could form a complete scalping strategy. Crucially a double confirmation through price action of resistance and support or candlestick pattern confirmation should be taken into consideration before executing these strategies.

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Question 3: Developing a Scalping Trading Strategy

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Scalping strategy rely on special decision making strategy mixes with top notch psychology, subdued emotion and other key elements to attain success in entry and exit point, stop loss placement amongst others.

Market Structure: This requires using a higher time frame to understand the overall trend of the market before taking that big leap or trade eventually, combination of these factors asides indicators is quite important for executing trades.

market structure aids smooth scalp trading

Sniper Entry: Choosing the most clinical point to make trades is quite a great factor, after observing, various procedures, the right time to take such trades is quite significant and should be very crucial. Indicators are double confirmation when the RSI crosses the oversold zone. When the RSI crosses the oversold zone which is 30 on oscillator chart and the main chart shows a price action signal spotting accompanied with a candle stick pattern confirmation that's the best time to stake a trade. This a viable prerequisites to scalp trading. The same applies at the overbought zone too.

Sniper Entry a key factor for scalp trading

Lot Sizing: Choosing accurate lot sizes could make or mar you as a scalper, it is quite expedient you choose your lot size perfectly before trading at least risk to reward ratio either 1:2 or more as the case may be to maximize profits eventually.

Take Profits and Closure: After profit is assured, it is important to close the trade even when the profit is not as important that you close trade to avoid incurring losses, die to the nature of the strategy. This process aids in maintaining while executing successful trades throughout your scalping journey.

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Question 4: Risk Management in Scalping Trade

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There are high risk involved in scalping which needs to be managed to maximize profits when trading the STEEM/USDT we must have a great hold of your emotional psychology. It is very obvious that in the 3 kin scalp there is a function of other factors, do not rush to closing trade due to this, confidently trust your setup and always watch it play out. So not let your emotions get the better part of you and that's quite crucial.

Importantly, stop loss must be set in order to avoid outrageous losses, I would definitely advice that it must be set up to enable traders minimize risk of liquidity. We must not also forget position sizing as a crucial risk management especially in highly volatile market, you need to take cognisance of the market, based on trade and total capital. This precaution ensures if trade goes against you, loss remains minimal eventually.

Above all, Mastering strategy with a valid and concise risk management scalping technique you could scale through. If you manage your risk properly through, knowing when to get that sniper entry and that unhesitating exit of trade, you are already 80% away from losses you could succeed eventually.

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Question 5: Real-World Scalping Case Study

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I would love to use the special scenario of Crash and Boom in synthetic indices During the set up the market structure is studied to understand the overall trend of the market, which is studied on a higher time frame. Immediately we visit the 5 minutes time frame after this activity to spot for special over bought or over sold zone and a double confirmation from our RSI indicator, moving Average on the oscillator chart, our goal remains to catch the spikes and boom, you pick a trade on the oversold after getting that double confirmation once it burns upward, you close the trade taking profit. Once it spikes on the overbought zone, you take profit and take the spikes and boom.

The crash and boom is usually effectively executed in the 5 min time frame. However, there are false breakout and retracement in the trend as usual, but then the indicators remain the double confirmation before entry couple with candle stick pattern confirmation, this is always a way of spotting all the false breakout or break in market structure too. Profits could be attained in a proper setup to prevent incurring losses while a careless setup risks chances of loss in trading.

Scalping generally, is an opportunistic activity and potential ability to gain profit in good condition and adequate risk management, never allowing emotions becloud judgement and having adequate psychology too would definitely crown your scalping journey with success.

Cc: @kouba01

I invite @heriadi @chant @inspiracion @wilmer1988 to join challenge