Scalping a technique of trading characterized by being a very short-term operation. In fact, they are usually operations that last a few minutes. Basically, it consists of achieving a rapid price movement motivated by a change in the trend or by the breakdown of a support or resistance. It depends on the objective or leverage (stop). In general, we speak of a “tight” leverage very close to the starting point and a typical objective may be to obtain 10 points depending on the market in which it is operated.
Scalping is also known as quick trading since it is based on changes in positions in very short periods of time (seconds or minutes). When we talk about longer spaces we mean day trading which is based on very similar principles with the difference that the time periods are longer. The reason why these forms of trading are so attractive is because you can make quick profits and in many cases, profits
important.
Although they are very fruitful operations, it is not suitable for all types of investors since it is a difficult practice due to its speed and agility. In the short term, Trading operations involve high leverage, knowing in detail the characteristics of the market, having a fast platform and a profitable broker that agrees to scalping. In most cases, machine-driven systems are employed. In general, scalping requires being very agile. Therefore, to make decisions, price action is taken into account in most cases. In addition, support and resistance are sought, volume is analyzed and the decision is made avoiding the more technical indicators. Custom indicators that are primarily based on price and time are preferred.