Intraday Trading. Scalping

Those who want the “here and now” frequently ask how to trade intraday. You will get the answer in this article, where we will examine what is scalping or what is intraday trading, what strategies exist, and how Resonance tools can help in successful trading.

Scalping is a type of trading in which transactions are made within small intervals of time, from a few seconds to a few minutes. The rate of profit in these transactions is a few pips (ticks).

When people in our community ask the question, “What do I start with?” we answer – with education. Without knowledge of the subject, you would look like a fortuneteller, rather than a professional trader. Lets go over a few basic principles again.

There are two sides to the market:

1. Buyer
2. Seller

And there are two types of orders:

1. Limit
2. Market

The participants include algorithms, private traders, and large participants (investor capital).

Finally, there are a few options for market strategies, namely the following three:

• Trend movement (long-term movement)
• Returning to the average
• Market-making (intra-spread trading)

You may ask why are there only three strategies. The fact is that they are all strategies for large participants who have a lot of money.

Scalpers, on the other hand, compete mainly with algorithms. At the same time, they see the market wider than the pattern of that very algorithm, so they can get the support of large participants and the so-called crowd.

Traders can also intraday trade inside the spread, but to do this they need to act faster than the algorithms, which is almost unattainable in reality. That is why we share our option of successful trading in the market.

What is needed:

1. Filter assets by interest/liquidity.
2. Switch between pairs and look for a situation when the price is stuck in limit orders and almost does not move.
3. Seek the interest of market participants in the form of trades away from the accumulation of limit orders.

Scalping strategy from Resonance

The Resonance tools allow finding profitable assets and intraday trading with several tools:

• Speed Print
• Hippo
• BAS

Within the market processes, the winner is the one who knows how to shift the expectation of the results of his actions in a positive direction. How? By having more information, having it faster than most players, or having more opportunities than most. Hence the moral for the investor: trust money and trading scalping to those who can prove to you that they have one of the three advantages, or better yet, two or all three.

Speed Print

Transactions or ticks are occurring in the market continuously. We can assess the interest of participants in an asset by the size and frequency of transactions. The Speed Print search engine helps us with this assessment.

In the main search engine window, assets are sorted by the highest signal coefficient by default. In order to immediately see the most relevant assets, you can additionally set a filter by average speed, for example, 5, which will help eliminate the assets with less than 5 trades per minute on average from the table.

The table is updated every minute, so you can find potentially interesting assets before there is a significant movement. Speed Print can take your scalp trading to the next level if you learn how to use it properly.

Cryptocurrency scalping with Hippo

Another useful tool for those interested in trading intraday. Hippo is a search engine for large-limit orders.

The main purpose of this tool is to notify you that a very large limit order has appeared in the order book on a particular asset and that the market may respond to it.

Intraday trading strategy with BAS

BAS is a tool showing the number of limit orders in the order book for each instrument on the available exchanges.

The traders task is to look at what is happening in the order book both on the BAS charts and separately examine limit orders, because even a single limit order, to which there is still more than one percent of movement, can create a large overrun.

You can learn the details of using these tools in our online university.

Exclusive tip for a scalper trading

It is not enough to know scalping strategies. When it comes to practice, you also need to know some practical tips to make scalping more successful. Check out one of such recommendations below.

The scalper must remember about three trading sessions:

• Start of the European session (there may be potential options)
• Start of the American session
• End of the American session

In the evening, the scalper closes all positions, but analyzes what happened during the day, studies examples of how the price of different assets moved, and what happened. At such moments, there is an opportunity to notice something unusual and take advantage of it next time.

P.S. Remember that scalping trade for beginners and for professional traders is the same set of tools and actions. Your strategy based on a big experience of losses will not work to your benefit, increasing your deposit. That is why learning new things and using tools that really work is the key to your successful intraday trading.