«Wicked Scalping» strategy: quick profit on cryptocurrency
- VFX Blog
Scalping attracts newbie’s with quick profits, especially when trading through the binary options trading simulator. What will be on the real account of the crypto market? Let's take the "Wicked Scalping" strategy as an example.
Type: Trend & Channel
Timeframe: Any in the range M1-M5. In our case, M1 is used, but with an increasing period of analysis, the accuracy of the signal increases.
Trading asset: Any options trading signals. The main requirement is a fixed (2-3 points) spread and no hidden fees.
Trading time: All Forex trading sessions.
Percentage premium option: Not less than 70-75%.
The strategy uses three technical indicators:
- Exponentials (EMA) Moving Averages with periods 14 and 35. Trend indicators by which we determine the opening point of crypto market. The strategy is not intended for trading during flat periods. We trade only if the range is between at least 15-25 points!
- Bollinger Bands (BB) − the horizontal direction of the BB lines confirms the presence of a flat, the breakdown of the lines will be the crypto trading signal of its end. If the range is wide enough, you can open options to roll back from the borders. This method is recommended only for experienced traders!
- MACD (12, 26, 9). This indicator works both as a trend and as an oscillator instrument, so it will be the final signal to open an option.
After installing the indicators on binary options charts, we look at the examples of signals:
Day trading crypto signals:
- UP (CALL) – option. The price is above the Bollinger middle line and EMA. MACD is above the zero level or its line is turning up.
- DOWN (PUT) – option. Opposite crypto signals: The price is below the EMA and the Bollinger middle line. MACD is below the zero level, the lines are turning down.
Beginners should wait for at least 2 values of the MACD histogram to overcome the zero level only then start crypto trading.
Open a trade on the next candle after best binary option signals. The time of expiration of options has to be not less than 15-20 minutes even if as a working timeframe it is chosen of 5 minutes, as in our video.
Recommendations about use …
- Bitcoin will be the basis of any crypto market strategy. Other currencies follow, albeit with a delay. The Ethereum exception - there are opposite rollbacks and corrections. This is usually the case when publishing important events about the currency, speculative actions are short-term and almost do not occur.
- After a strong trend, the MACD, like any other oscillator, can "stick" for a long time in critical areas or near the zero level, without crossing it. At the same time, the EMA can give strong signals to open options. Whether or not to accept them, especially bitcoin signals, for binary options, is up to everyone to decide for himself. It is still better for beginners to wait for a fully formed entry point.
- If the broker gives the option to close before the expiration date, we do it (even if it is in profit!) When opposite crypto signals appear - a repeated reverse crossing of the Moving Average with a fast or relative change in the direction of the MACD histogram.
Scalping with binary options on digital money can bring stable profits even on standard technical indicators. The main condition is for crypto brokers to execute trade orders with a minimum delay. The strategy can be used not only on the minute, but also on the M5-M15 timeframes.