Dealing with digital or cryptocurrency requires you to be careful in trading it just like fiat currency. You cannot say for sure that a particular strategy is the best because, this depends on how well it works for an individual. Traders that prefer short-term kind of trade usually have a number of strategies as they only trade during the day and try to make as much profit off it. They keep a constant eye on the market for any slight movement in the value pattern and buy in when value drops and sell out when value rises. That's because digital currencies tend to have an unstable market worth it may rise or fall at any time depending on certain factors. However, there are steps you can follow which may guarantee profit generation from this strategy when working with day trading.
The strategy in this piece is called scalp trading which aims to make quick profits, suitable for day exchange. The first step is finding a coin with high volatility and liquidity investors tend to pick coins such as Bitcoin which has the highest volatility. Otherwise, try to find other altcoins that have high liquidity as well as being volatile enough then buy in. Day trading in less popular currencies may also be a lucrative business, but the risks are just as great because the value can fall just as fast as it rose. Indicators are significant tools while using this method and that is the second step in exchanging through this method. You can set up a 5-minute Money Flow Index (MFI) indicator on the charts which will alert you when there are sales or purchases of the coins. The best setting for MFI is to set it at 3 periods.
An MFI indication of 100 could only mean that big-time investors are getting into the market and that's a good thing. Therefore, you should wait until it reaches this level but don't trade in immediately after the first and second MFI reading of 100. Instead, you should skip the first two and carefully study the price reaction of the currency. Technical indicators may not always give the correct results, so that is done to fine-tune the day trading strategy. It has to stay until 100 after the first two 100 MFI readings to make sure that it will not be a down day. As, that would be the case if it was dropped after the first two 100 level MFI readings. This is the third step to make profit as a scalp(day) trader and now brings you to step number 4.
You don't necessarily have to make a trade immediately at the third 100 level in case you missed that one, you can wait for the next one as you move along. Of course, when you do this you have to ensure that all other technical conditions are met to the fullest. Once you get the readings you need the candlestick to be a bullish one, meaning it has to be near the upper end of the chart. The next step involves knowing where to put your protective stop loss (PSL) and where to take profit. The PSL should be kept hidden below the low of the day and profits should be taken an hour after opening trade. Protective SL is placed below the low so that when a break below that mark occurs it's a signal for investors to get out of there. When such a break happens it signals a shift in market sentiment and that, is the get going sign.
Aside from that, a break may also signal a reversal of the day. Holding a trade for over an hour after opening may lower your chances of successfully making a profit, therefore don't wait until 60 mins after the exchange is triggered to start working. That is the final step in scalping as a day exchanging method among multiple others that are not mentioned in this piece. You can take some pointers from the information above and backrest it yourself to see how well this works for you. Whether good or bad you can still earn a living through other methods of day exchange and earn as much as possible. So, go to your platform and put it to the test but good results may be guaranteed.