Scalping in cryptocurrency and forex: Strategies, indicators, and first steps

What is scalping actually?

Scalping is a trading technique where traders execute dozens or hundreds of transactions per day, aiming to make small profits from each price movement. It’s not about large gains per trade, but about accumulating countless small wins that together generate significant returns. In the world of cryptocurrency, where the market runs 24/7 and volatility can spike quickly, scalping has become especially popular.

Scalping requires sharp focus, quick decision-making, and thorough market knowledge. However, it’s not reserved for professional traders—beginners can also get started, provided they master the fundamental strategies and tools.

The advantages of scalping

Why do so many traders choose scalping? Here are the main benefits:

Profit opportunities in all market conditions. Scalpers don’t need to wait for big price moves. They profit from small fluctuations, so even in low volatility, they can generate income.

Applicable across multiple markets. Whether you trade cryptocurrency, stocks, forex, or futures—scalping works everywhere. Bitcoin, Ethereum, currency pairs like EUR/USD, and individual stocks: all suitable.

Limited impact of fundamental factors. In short-term trading, economic reports and company news play a smaller role. The focus is purely on technical price movements.

Low entry barrier. You don’t need a lot of money to start. Just a few hundred euros are enough to get going and gain initial experience.

High liquidity available. Popular cryptocurrency pairs like BTC/USDT and ETH/USDT have enormous trading volumes, making entry and exit easy.

Risks to consider

Every trading style has its downsides. For scalping, these points are crucial:

Intensive attention required. Scalping demands constant monitoring and quick reactions. This can lead to mental fatigue and stress.

Trading costs accumulate. Frequent trading means paying commissions often. On platforms with high fees, these costs can quickly eat into your profits.

Loss risk from mistakes. Wrong analysis or delays in order execution can quickly lead to losses.

Technical issues. Internet connection problems or platform outages can disrupt your trades at critical moments.

Emotional impulsiveness. Rapid succession of trades can cause overemotional decisions and irrational actions.

Scalping in cryptocurrency versus stocks versus forex

Scalping in cryptocurrency

The crypto market is ideal for scalping. You trade 24/7, volatility can reach dozens of percent daily, and popular pairs like BTC/USDT and ETH/USDT have massive liquidity. Traders can catch price swings of 1–5% per hour here.

Specific advantages:

• Top trading volumes on Solana (SOL) and other altcoins
• Very low or no commissions on well-chosen platforms
• Automation via trading bots is possible

Scalping in stocks

In the stock market, day traders focus on opening hours. Stocks of large companies offer short-term movements driven by news or technical reactions.

Key features:

• You need a broker with very low commissions and fast order execution
• Trading hours are limited (usually 9:30–16:00 local time)
• Volatility is generally lower than in crypto

Scalping in forex

The currency market is the classic playground for scalpers. EUR/USD, GBP/JPY, and other pairs have immense liquidity and minimal spreads.

Characteristics:

• Leverage up to 1:500 is common
• Spreads are minimal—crucial for profitability
• M1 and M5 timeframes are popular

Practical scalping strategies for beginners

Trading on support and resistance levels

This is the most beginner-friendly approach. Identify key price levels where the price regularly reverses.

How it works: Buy when the price approaches the support level and bounces back. Sell at resistance or set a small profit target in advance.

Practical example: For BTC/USDT, support is around $60,000. When the price nears and rebounds, buy with a profit target of $60,300 and a stop-loss at $59,900.

Trend scalping

Determine whether the short-term trend is upward or downward, and trade in that direction.

Method: Use moving averages (MAs) to reveal the trend. In an uptrend, buy on small pullbacks.

Example: ETH/USDT on M5 chart moving upward. Buy when the price retraces to the 20-period MA and sell at +10–20 points profit.

Impulse scalping

Capture sharp, sudden price jumps by large order volumes.

Approach: Monitor trading volume. When volume suddenly spikes, follow that movement.

Scenario: Sudden volume spike on SOL/USDT. Jump in and take profit at +0.5–1%.

Trading on news items

Volatility spikes when major news is released.

Strategy: Buy in the first minutes after bullish news, or short-sell during bearish reports. Quickly set your take-profit—at 2–5% profit.

Which indicators help with scalping?

Exponential Moving Average (EMA)

EMA reacts faster to price changes than regular Moving Averages. For M1/M5 charts, use EMA 9 and EMA 21.

Signal: When EMA 9 crosses above EMA 21 = buy signal. Downward cross = sell signal.

RSI (Relative Strength Index)

RSI measures overbought and oversold conditions.

Interpretation:

• RSI above 70: overbought, price may fall
• RSI below 30: oversold, price may rise
• RSI above 50: bulls in control
• RSI below 50: bears in control

Bollinger Bands

These bands show volatility. Price at the upper band suggests overbought; at the lower band suggests oversold.

Practical use: Buy when price hits the lower band and bounces back up. Sell when price hits the upper band and retraces.

Volume

High volume confirms the strength of a price move.

Use: Large volume during an uptrend = strong buyers. Large volume during a downtrend = strong sellers.

MACD

MACD helps detect trend changes and measure momentum.

Signal: MACD line crossing above the signal line = buy signal. Downward cross = sell signal.

Step-by-step example: EMA + RSI strategy

Suppose you trade BTC/USDT on M5 with this combo:

Preparation:

• Open chart in TradingView
• Add: EMA 9, EMA 21, RSI (period 14)
• Timeframe: M5

Entry conditions:

• Buy: EMA 9 crosses above EMA 21 AND RSI > 50
• Sell: EMA 9 crosses below EMA 21 OR RSI < 50

Profit and loss management:

• Take-profit: +0.5–1% from entry point
• Stop-loss: -0.3% from entry point

Example with numbers:

• BTC at $60,000
• EMA 9 crosses EMA 21, RSI at 55
• Enter buy
• Take-profit: $60,300 (0.5% profit)
• Stop-loss: $59,820 (0.3% loss)

Minimizing risks: practical tips

1. Always use a stop-loss. Limit loss to a maximum of 0.2–0.5% per trade.

2. Trade only liquid pairs. BTC/USDT, ETH/USDT—these have enough order book depth for easy entry and exit.

3. Control emotions. Follow your plan. Impulsive trades lead to losses.

4. Use limited leverage. For beginners: 1x–3x max. Too high leverage exponentially increases loss risk.

5. Stay informed. Keep up with major announcements—sudden volatility can hit your stop-loss.

6. Choose trading hours. Trade during peak hours (high volatility = better opportunities). For crypto: 8:00–11:00 UTC.

7. Limit trading time. Restrict yourself to 1–2 hours per day to avoid fatigue.

Setting up indicators: platform tips

In TradingView

1. Choose your chart (BTC/USDT for example)
2. Click “Indicators” and search:
   • EMA: add 9 and 21
   • RSI: period 14
   • Bollinger Bands: period 20, deviation 2
3. Set timeframe to M1 or M5
4. Signal analysis:
   • Buy: EMA 9 > EMA 21, RSI > 50, price at lower Bollinger Band
   • Sell: EMA 9 < EMA 21, RSI < 50, price at upper Bollinger Band

For forex-specific scalping

Add: MACD (settings 12,26,9), Pivot Points, Fibonacci Retracement.

For stock scalping

Add: VWAP (Volume Weighted Average Price), Bollinger Bands, Stochastic Oscillator (settings 14,3,3).

Summary of perfect settings

From zero to scalper: how to start?

Step 1: Build a theoretical foundation

Read articles about:

• Technical analysis fundamentals
• How indicators work
• Hedging and risk management
• Case studies of successful traders

Step 2: Master the platform

Spend time on TradingView. Learn:

• How to set up charts
• How to add indicators
• How to place orders
• How to annotate charts

Step 3: Practice on demo account

Most platforms offer a demo version with fake money. This is invaluable. Test here:

• Your strategy risk-free
• How quickly you can react
• Which indicator combination suits you best

Step 4: Keep a trading journal

Record every trade:

• Entry point and reason
• Exit price and reason
• Profit/loss
• What went well, what went wrong?

This helps identify patterns and understand yourself better as a trader.

Step 5: Start small, scale as you grow

1. Create an account, deposit $50–100
2. Choose one pair (BTC/USDT is safe for beginners)
3. Make 1–2 trades per day, targeting 0.5–1% profit
4. Analyze results weekly
5. Gradually increase volume as confidence builds

Choosing platform and terminal

Essential requirements for a scalping platform

• Low commissions: Critical. At 0.1% fee per trade, you lose 0.2% round-trip. At 0.01%, only 0.02%. This difference is huge over hundreds of trades.
• High liquidity: Large order books ensure tight spreads and quick fills.
• Fast order execution: Millisecond latency counts.
• Advanced charting: TradingView integration is a plus.
• API support: For those who want to use bots later.

Popular options

TradingView: Excellent charts and indicators. Works with almost all brokers.

MetaTrader 4/5: Standard for forex. Strong automation options.

Thinkorswim: Favorite for stock scalpers. Very advanced.

Practical tips from experience

1. Don’t trade during major market sleep times. Low volatility = poor scalping conditions.

2. Use hotkeys. Set shortcuts for quick opening/closing positions. Saves seconds—and seconds matter.

3. Fatigue is enemy number 1. After 2 hours of intensive scalping, your focus drops. Stop and take a break.

4. Keep a trading journal. Not for stats— for your learning process. What works for you?

5. Stay modest. First month: focus on consistency, not big wins. Once your system is stable, scale up.

6. One setup at a time. Master one strategy fully before moving to multiple. Chaos with 10 setups leads to losses.

Simple start: 7-day step plan

Day 1–2: Read this article and related materials thoroughly.

Day 3–4: Register on a platform, explore the interface, practice on demo.

Day 5–6: Test your first strategy (EMA + RSI) on demo for 20 trades. Keep records.

Day 7: Analyze results. Work on what doesn’t work. Practice again on demo.

Week 2: Invest small real funds and start immediately. 1–2 trades daily, $10–20 per trade.

Week 3+: Analyze, learn, slowly scale.

In conclusion

Scalping is a dynamic, profitable trading style—but it requires discipline, patience, and continuous improvement. The path isn’t quick, but those who persist will reap rewards.

Your step-by-step plan:

1. Learn the basics of technical analysis
2. Choose one simple strategy (support/resistance or EMA+RSI)
3. Practice on demo until comfortable
4. Trade small and real until consistently profitable
5. Scale up as confidence grows

With the right mindset, risk management, and tools, you can earn steady money via scalping within weeks. Start today—and take your first active trading step.