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So in an anticipation of price reverting back to the moving average, it is a useful piece of option to use during sideway markets which is the worst market condition for scalper.Important index for trading on all instruments. This method works best in sideways market where price usually retraces back to the moving average. However, if you use the reserve MA Filter, you will go short when the price is above the moving average. For example, the strategy will go long when the price is above the moving average. Reverse MA Filter: This option allows you to use the moving average in reverse. Type 1 being the normal calculation and type 2 being the secret sauce. Most commonly used length being 50,100 and 200.įilter Type: This is our propriety smoothing method in order to make the moving averages lag less and influence the way they are calculated slightly. You can choose from 14 different moving average types to detect the trend as accurate as possible.įilter Length: You can select the length of your moving average. MA Filter Type: There is a selection of moving averages that is available on TradingView currently. This option allows you to confirm the cross by selecting how many candles the price needs to stay above or below the moving average. If the market is choppy and the price keeps crossing up and down the moving average you have chosen, it will generate a lot of “noisy” signals. Lookback: It is an option to look back x number of candles to validate the price crossing. It will allow you to enter trades only when the market is trending. If the volatility is low and there is no real price movement, ADX will pick that up and will not let you get in trades during a sideways market. ADX becomes a useful tool since it can detect trend.
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Unfortunately, the worst market condition for this strategy is sideways market. It is an indicator that measures volatility in the market. Use ADXĪDX stands for average directional index. Instead of looking at x number of candles and providing an average price, it will take into consideration volume that’s traded at a certain price and weigh it accordingly. It does reset every trading session which is at 00:00 UTC. It is an extremely useful indicator when trading intra-day. VWAP stands for volume weighted average price. In a way, you can use STOCH to scalp RSI. This way it will help you have better entries than just using RSI. Stoch may not be in the buy zone when RSI is at say 35, however, if price dips a little more and STOCH might be in the buy zone when RSI is at say 20. It will help the users to get a better entry if used correctly. STOCH acts like RSI but it is more prone to small moves. Use STOCHįor those who want extra protection on their entry can throw STOCH into their decision making. You can do so by selecting the custom RSI timeframe as well as adjusting the Oversold and Overbought value. For example, if you are looking at the 5min chart to use Bollinger bands but you would like to look at the RSI value on the 15min chart. Alternatively, there is an option to use RSI on a different time frame than you are currently on.
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You can also turn on and off the RSI as well. This setting will allow the user to weed out the noise in the market and really allow them to make the most out of Bollinger bands. Using this setting, you can ignore the signals that would be generated while Bollinger bands are contracted. It is known that when prices are stable and moving sideways, Bollinger bands contract and it becomes more reactive to small moves in the market. This setting will allow the user to determine at what Bollinger band width %, he wants to take start looking to take trades. This is one of the main decision makers of scalper. Increasing the Multiplier will give you fewer but safer entries. Default settings will use 20 moving average and take standard deviation of 2 to create lower and upper bands. BB Length will determine the Moving average you are using to take the standard deviation off of which is named as BB Multiplier. This piece of the settings will turn and off Bollinger band’s input in the decision making. Scalper is highly customizable and provides endless opportunities to find profitable setups in the market. This strategy is a scalper strategy developed by HFT Research.