Getting Started
Scalping is one of the most popular trading strategies among retail traders. Scalping usually involves capitalizing on small gains over very short time horizons, mostly intraday. Traders usually use technical indicators and price action analysis to define their entry and exit points. Scalping is very popular among crypto traders, as cryptos are highly volatile compared to other traditional investment vehicles.
Scalping in general is similar to high-frequency trading that involves buying low and selling high within a short period of time. The goal of a scalper is to capture small price differences, profiting from the market's inefficiency. Unlike traditional trading, which focuses on larger price movements, scalpers focus on making small, frequent trades. Crypto Scalping has become a popular trading strategy amongst traders, especially those who are experienced in the field of cryptocurrency trading.
WHY CHOOSE CRYPTO SCALPING?
1. High Reward Potential:
As a scalper, you have the potential to make significant profits from small price movements. Given that a trader is efficient in choosing the right exit point more frequently, he can make use of the compounding effect to grow his or her account exponentially. This is especially true in volatile markets, where prices can change rapidly.
2. Low Capital Requirements:
Scalping requires less capital than other forms of trading, as you don't need to invest large sums of money. This makes it an attractive option for traders with limited funds. Moreover, Binance provides leveraged products, which further increase profitability. However, one must be very careful with such products, as they also increase the chance of losing money. We do not advise any beginner traders to use leveraged products (e.g. perpetual pairs) in the beginning.
3. Flexible Trading Hours:
Since scalping involves making multiple trades within a short period, you can trade during any market hours that suit your schedule. Moreover, crypto currency markets are open and trading every day without any holidays (subject to available market liquidity).
4. Technical Analysis:
Crypto scalping relies heavily on technical analysis, which allows you to identify patterns in price movements that can be exploited for profit.
TIPS AND STRATEGIES
1. Understand the Market:
Before you begin scalping, it's important to have a solid understanding of the market and the financial tools available. This includes understanding market trends, how prices are determined, and how volatility affects your trades. In addition, if you are willing to trade other instruments available on Binance (Futures, Options, etc.) we strongly advise you to get familiar with the pricing mechanism for those products.
2. Use Technical Analysis:
Technical analysis is crucial for scalping, as it allows you to spot patterns in price movement that can be used to your advantage. Some popular technical analysis tools include moving averages, support and resistance levels, and candlestick patterns. You can find more about technical analysis in our weekly blog.
3. Manage Your Risk:
Scalping involves taking on more risk than other forms of trading. To mitigate this risk, it's essential to use stop-loss orders and limit orders to protect your capital. We strongly advise you to improve your knowledge of financial risk management, as most of your results will be directly affected by your risk management tactics. More on risk management can be found in our blog.
4. Trade Multiple Coins:
Instead of focusing on one coin, try to trade a variety of coins to maximize your profit potential. This will help you take advantage of small price differences across multiple coins. It is especially crucial to trade lower-correlated coins, which will lower your portfolio risk overall. To learn more about it, read our blog on diversification.
OSIRIS AI
A scalping screener is an essential tool for anyone exploring the world of scalping. A good scanner should be providing real-time updates from the market, as being on time for trends is essential for traders' profitability. It also should provide additional tools to analyze and guide one through the uncertain world of trading.
Osiris is a fast and simple environment engineered by a group of traders to support their everyday trading activities. It is designed to provide all the necessary tools and resources that traders rely on to make successful trading decisions. We are also in progress of uploading custom-developed tools and strategies used by our team.
Our platform collects the essential information required for scalping and trading by offering tools such as scanners, market data aggregators, and market screeners. Additionally, our algorithms generate live quantitative summaries for all crypto coins listed on the Binance Exchange, including breakout summaries (with other resources currently under development).
Scalp Scanning tool
The main page of Osiris provides a crucial information feed for active traders in the cryptocurrency market. It displays the twelve most active crypto pairs currently trading with perpetual futures. Traders can utilize this page to identify the most volatile pairs in real-time and swiftly take advantage of increasing volatility.
This tool enables traders to easily identify pairs with the highest volatility from the early stages of market activity, positioning them as one of the first participants to enter the market. Our scanner continuously updates with live data sourced from Binance, granting traders free access to well-organized data that can be utilized at any given moment.
QUICK SETTINGS
In Quick Settings you can modify sorting logic and number of displayed perpetual pairs on the main page. Please note that these settings are only for the given session and will switch back to default settings after you log out or close the page in your browser. If you want to apply permanent changes to these setting, please visit to Settings page.
1. To change perpetual pairs sort option
2. To change number of displayed perpetual pairs
SORT OPTIONS
• AI sorts pairs by analysing trade delta (buy/sell absolute difference) and NATR (average high/low prices) in windows of 14 candlesticks. It uses comparison of current and previous windows to sort all pairs according to their activity level described by these two parameters.
• Volatility sorts by comparing the last 14 candlestick normalized high/low prices against the previous 100 candlesticks.
• Volume sorts according to the actual traded volume in USD during the past 24 hours.
• Volume Grow sorts coins according to the most recent Volume activity, by analysing the latest 100 candles. Then it is compared to the equivalent from a daily Volume and highest divergences are chosen.
• Trades Grow implements the exact same logic as Volume Grow but on trades metric.
• Funding Rate is sorting according to funding rates provided from Binance. More about funding rate and its applications you can find in our Blog.
SINGLE PERPETUAL PAIR
1. Perpetual pair name and base asset image
2. Traded volume in 15m, 1h and 24h
3. First line is showing actual funding rate. The second line describes expected breakout magnitude in percentage terms. This measure is calculated by Osiris AI Model, based on historical breakouts. In addition the Model analyzes information derived from Volume, Trades, Trades Delta and Price Accumulation.
4. This line represents support / resistance levels, the level that stopped price action or triggered a reverse price movement in the instrument previously. On the left to the price, is info about maximum timeframe that this price was significant for the instrument. To construct support / resistance levels we use latest 100 candles in 1m, 5m, 15m, 30m, 1h, 4h and 1d timeframes.
5. Current price
6. Actual traded volume
LARGE LIMIT ORDERS
White boxes are summarizing the data from the order book in Dollar value. The box above the actual price is accumulation of Ask orders, while the box below is the accumulation of Bid orders.
We believe this information is crucial to identifying correct price trends. One can judge buying and selling forces on a certain coin by correctly analysing the information presented. For instance, a huge imbalance may indicate higher probability of one-sided move towards less concentrated side. In Densities you can find accumulated orders data for all pairs listed in Binance.
Densities Scanner
The Osiris Densities page offers real-time market depth data for all perpetual cryptocurrency futures listed on Binance. Traders can utilize the displayed information to analyze the current market depth and the volume of orders for each pair. This data, when combined with other information, allows scalpers to assess the speed of price movements and evaluate the effectiveness of their positions.For example, if the BID/ASK shows a volume of $100 million, while the trading volume in the last 24 hours was only $10 million, a trader may assume price stability for the following day, assuming all other factors remain constant. We created Osiris based on our own trading needs, and we believe that most traders would benefit from having all this information collected and organized in a single tool called Osiris.
PERPETUAL PAIR DENSITY DATA1. Real-time traded price
2. Shows Dollar Volume of Bid and Ask orders respectively.
3. Shows prices at which Bid and Ask orders are placed, in other words shows Bid and Ask
4. Translates amounts into base asset quantities
5. Shows distance of (2) from (1) in percentage terms. Usually we expect these measures to be closer to 0% for liquid pairs, and the measure can be used to judge contracts liquidty.
6. Counts time since the orders were placed initially, longer time indicates better liquidity.
HOW CAN BIG LIMIT ORDERS IMPACT THE PRICE?
Large limit orders can influence the price in different ways, depending on the specific situation and the market conditions. Especially when it comes to liquidity analysis limit order can present lot’s of advantages for successfull positioning.
• Large limit order blocks by nature act as support or resistance forces. They represent the first barriers price has to cross to move in either of directions.
• Multiple blocks of limit orders on the same side represent even stronger forces that hold price from moving in one direction.
• In other words, large limit orders can be used to assess coins liquidity. Bigger limit order blocks limit price movements thus making a coin more liquid. The coin is considered liquid when market orders have less effect on price, thus price reflects only fundamental values.
• Consequently, this information can be used to plan a trading strategy. As scalp traders try to profit from market ineffciciencies they are in search for coins that may have decreased liquidity for a short period of time and reflect price ineffciency from which traders can profit by correctly planning and executing their trades. Our models provide signals that identify decreasing liquidty pairs.
Market Data Tool
The Osiris Markets page offers real-time data on three key clusters of the market. It distinguishes the top and bottom 12 pairs with the highest and lowest returns in the past 24 hours, as well as the top 12 pairs based on trading volume during that period. This page facilitates the swift identification of outlier pairs from the previous 24 hours and subsequently aids in analysing overall market conditions, providing a broader perspective.
We firmly believe that traders can achieve the best results by utilizing all the information provided by Osiris collectively. In our blogs, we will discuss specific strategies and explore how these synergies of information can add value to traders.
1. Here you can search for the perpetual contract you are interested in.
2. Most relevant trading pairs divided by categories
In this page you trading pairs filtered by Higher Price Volatility, Higher Funding Rates, Market Anomalies, Daily Top Crypto Gainers, Daily Top Crypto Loosers and Daily 24 Hour Volume Ranking
This section summarizes all sorting strategies. Instead of showing one strategy and all pair graphs, it displays sorted pairs for all sorting variations with only major descriptive information regarding price, volume and identifier. To access further information one can click on the ticker which will transfer you to the coin page.
PERPETUAL PAIR INFO
1. Shows contract identifier as defined by Binance for further reference. Also linked to the coin page so user can quickly redirect to the coin page.
2. Shows the actual trading price at the moment.
3. Displays actual price change and volume metrics for the last 24 hours.
Chart Page
Each coin can be analyzed in a dedicated page where we display all the neccassary details regarding the pair. Each coin page has three seperate graphs. One is always displaying BTSUSDT, and is used to keep track of overall market direction. The other two are used to plot price time series of the coin of interest. Why do we provide two graphs? With two graphs traders are able to assess two different trends, mainly short and long term trends. This setup can help to identify noise from the actual price trend and thus make plays on market inefficiencies, in this sense noise. Furthermore, availibilty of shorter timeframe fluctuations can be used to more efficiently plan entry/exit into long holding positions.
Additionally, on each coin page, we provide coin-specific statistics such as Correlation to BTC, Volume, NATR, Trades Growth, and more.
1. Always displays BTCUSDT Perpetual contract price, as BTC is representing more than 50% of the whole cryptocurrency market cap we use it as market direction indicator.
2. Depending if a referred base asset has a spot contract or not (2) will display spot contract graphic. It is useful to identify divergencies in spot and futures contracts and use it in strategy planning.
3. Summarizes key information regarding the main perpetual contract. The information describes price movements and quantifies certain trading characteristics discussed in other sections.
4. The box gives available option for candlestick timeframes, user can choose one of the options depending on his or her style or interest.
5. Candlesticks are representing Open, High, Low, Close values for the given timeframe. Green candle indicates increase in price while a red candle indicates decrease in price. Highest and lowest points in candles indicate High and Low prices for the timeframe.
6. Volume ticks show volume traded for each candle. Growing volume indicates increasing interest towards the pair from traders.
7. The box represents Candlestick values for Open, High, Low, Close, Change and Volume.
8. The value represents the most recent daily maximum price touched by the contract.
9. The value refers to actual trading price at the moment.
10. The values refers to actual trading volume at the moment.
1. Shows contract identifier as defined by Binance for further reference. Also linked to the coin page so user can quickly redirect to the coin page.
2. Shows candlestick timeframes, available to modify the displayed graph.
3. Shows all the relevant statistics regarding the chosen contract, ranging from simple statistics to AI generated predictions, signals.
IMPORTANT METRICS
BTC Correlation metric represents the magnitude of changes in a coin when Bitcoin changes, or vice versa. Correlation can range from 0% to 100%, where 100% indicates strong positive correlation, 0% indicates strong negative correlation and 50% indicates weak correlation.
Strong positive correlation indicates that two contracts were moving in the same direction historically, meaning when one was increasing(decreasing) the other was increasing(decreasing) as well. On the other hand negative correlation implies inverse movements for two contracts, increase(decrease) in one is associated with decrease(increase) in the other. Weak correlation implies no association between the two pairs and can be very useful metric when trying to diversify a portfolio.
Volume is important for successful breakouts because it reflects the level of market activity and interest from participants. High volume can indicate a healthy market that is likely to support a breakout.
During a breakout, volume can confirm that it is a genuine trend change and not just a random price fluctuation. If volume spikes significantly during a breakout, it shows support from the market and increases the likelihood of success. Trends confirmed with higher volume are usually believed to be healthy trends and continue into the future.
Additionally, volume can also help identify support and resistance levels. When price hits a resistance level, high volume can suggest that price is more likely to pull back rather than continue moving up, creating a buying opportunity. Similarly, when price approaches a support level, low volume can be an indication that support is likely to break, creating a selling opportunity.