 What is scalping? In day trading, scalping is a term of a strategy used to make quick profits on small moves. A scalp trade could be from a few seconds to a few minutes to even a few hours. Basically, anything under a day is considered a scalp. If you're holding trades for more than a day, then they're considered swings. Now, scalping does require some strict rules that you must follow because one large loss could eliminate all the small gains you've worked to obtain. So why would you scalp versus just swing trading? Swing trading is usually for a bigger move. The issue with bigger moves is that they happen less often. So a lot of times you're just kind of sitting on the sidelines waiting for a direction. Smaller moves are more frequent. So even when the price is ranging or relatively quiet, there are still many small movements that a scalper can exploit to make profits. Hey, what's up? Jay here and welcome to Bitcoin Daily bringing you guys the best tips, tutorials and ideas to help you guys become profitable and successful investors. The goal of this channel is to empower you, the beautiful people and community with the knowledge and resources to take your skills up to that next level. So if you guys are new here, don't forget to subscribe and turn on the notification bell. And if you guys enjoy this video, smash that like button. Let's jump right into this video. So scalping can definitely get very complicated. So here at Bitcoin Daily, we always try to keep everything as simple as possible for you guys. And that's what we're going to do with today's tutorial. So a lot goes into whether or not you should enter a trade. And when it comes to scalping, it's no different. So we're going to start with the basics here in today's video to try to get you to understand the idea behind scalping and how to start finding trades that you can scalp. So the type of scalp trades that I like to do are breakout trades. I like and believe that the easiest way to scalp trades is using a breakout and some momentum behind that movement. So how do you find that breakout becomes a question? The answer is points of interest. Find points of interest in the charts like support and resistance. And you will start being able to see breakouts. The more interest that there is at a certain level, then the bigger that breakout usually can become. So let's go ahead and take a look at the price of Bitcoin and look for some points of interest here. So how do we identify these points of interest? So the first thing that I like to do is have a fresh new chart with nothing on it. And I like to zoom out of the chart. So you can start at the monthly or weekly is usually where I like to start. The first thing I then do is grab my Fibonacci retracement tool here. If you've been following this channel for a while, you know that I love this tools, one of my favorite tools to use for when I'm doing technical analysis. And then I look for a starting point on the move, right? Like let's say here, it could be either March or we're going to go with the first green month, which was April of 2020. So I'm going to run this Fibonacci level all the way from the bottom there for that from that first green candle all the way to the top of this price going to lock that up. So now with this, we have an idea of where certain levels are and you could begin to see here different areas where the price has reacted, right? Remember points of interest. Now we're going to zoom in to the weekly time frame and take a look at some more confluence is basically what you're looking for. Remember, the price action tells a story. You have to put the story together. That's your job when you're analyzing these charts in the price action, look for the story that makes the most sense. So now that we zoomed into the weekly, we could see a little bit more confluence again. Look at this right here and look at this right here. So what does that tell us that definitely tell us that this level right here is a very important level where we've been rejected multiple times, right? Over here and we've been rejected over here. Then if we look at the bottom of this range, we can see that right here is a strong support, another big point of interest. And again, over here, we've had the same support here, another strong point of interest. So what about in between? You will notice that this Fibonacci line right in between has also been a strong point of interest there. There's been a support there. Then once we fell under it, it became a resistance here. And once we broke back above it, right, you see this candle right here, we broke above it and it was a big move up. Now, if you look over here to where we currently are right now, you will see that we have been just trading in this exact same pattern in this exact same range using these exact same levels that we previously saw back here. So a few levels that we're seeing right off the bat is right here, right, the top of the range and the bottom of the range, of course. So bottom of the range, top of the range. So let's identify these price targets there because there's obviously a lot of interest in these areas. And these are areas where we can find some trade entries. So this first level here is going to be that $42,000 area. If you've been watching our videos for a while, you'll realize we've been talking about this level for probably a month or so at this point, right? Now, what's the middle of the range here? The middle of the range here, you'll notice is $35,000. Again, another key point that we've spoken about a lot. And then the bottom of this range is down here. And what price is this at? It's at $28,000. So that gives us three key numbers. So we have $42,000, $35,000, and $28,000. Those are going to be the main numbers that we're watching. So now we're going to zoom in once again. Now we're zooming into the daily timeframe. Now here on the daily, you can see an even bigger breakdown on exactly what the price has been doing at each of these levels, right? You can see it both on both sides here. So how can we use these numbers now that we've already identified these big points of interest to take trades? So currently where we are right now, we're right at that $35,000 range. We're currently under it. So what we've been doing is taking trades, breakout trades to the upside above $35,000. And you'll see that if you've taken a trade on each time that it's broken up on this one, it went all the way up to $36,625 on this one, it went all the way up to $36,113. This one right here went all the way up to $35,961. So every single time that it's broken up above $35,000, it's gone up at least $1,000. So let's say you've just been taking this trade straight up with no leverage and no margin. A move from $35,000 to about $36,000 is about a 2.9% profit on that move. Let's say you wrote this one up all the way up here, that is about a 4.5% profit on that move. So you would have been doing about on average around $1,000 in profit each time if you took that trade when it went over $35,000. Remember, I enter breakout trades. So when it breaks out aka breaks above this level, that's when I enter the trade. Now 4.62% is not a lot, but once you get good at this and you could consistently take these and make profits, then all you have to do is add a little leverage to it. And let's say you're using 10x leverage on a 4.62% move, that's 46.2% profit on the one trade. And that's when you really start to make profits scalping Bitcoin on these small moves. Now you can do the same thing at the next level above $42, you can do the same thing if we fall below $35, let's say the price goes above $35, and we break back below $35, you can enter a short entry at that point and scalp it on the way down. Let's say that we go to $28,000, you can enter a long entry knowing that this is a strong support and write it up. Let's say it falls below $28,000, now you can take a break down, break out to the downside short trade, shorting Bitcoin down. And that's the basic idea of scalping with small moves. You're looking for points of interest, then you're looking for the price to break either out above that price or down below that price. And then you're entering the trade either long, if you're thinking the price is going to go up, or short, if you're thinking the price is going to go down. Now, of course, this is just one part of the many different things that you have to take into account when taking scalps and looking for entries. But it's just to get you to wrap your head around the idea of how scalping works in the most basic principles when it comes to looking for entries on scalps like this. So I hope you guys have enjoyed this video. If you did, make sure to smash that like button. If you have any questions about anything that we covered here, don't forget to drop it in the comments and I will be more than happy to answer it for you guys. And if you guys are new to the channel or if you haven't subscribed yet, don't forget to subscribe to the channel guys and turn on that notification bell. Thank you guys so much for watching this video. I will catch you on the next one. As always, peace and love.