Scalping with Williams %R, MACD, and SMA (1m)

The Scalping with Williams %R, MACD, and SMA (1m) indicator is a specialized trading tool designed for low-timeframe execution, combining momentum, trend-following, and trend confirmation filters to identify high-probability scalping opportunities.

Usage

The script is primarily used to identify short-term reversals and trend continuations on the 1-minute timeframe. Users should monitor the following signals:

• Long Entries: Occur when the Williams %R crosses above -94 (indicating recovery from oversold conditions) while the price remains above the 7-period SMA. The final entry trigger is a positive MACD histogram shift.
• Short Entries: Occur when the Williams %R crosses below -6 (indicating recovery from overbought conditions) while the price remains below the 7-period SMA. The final entry trigger is a negative MACD histogram shift.
• Exits: Positions are closed based on MACD histogram momentum shifts; long positions close when the histogram decreases, and short positions close when it increases.

The indicator includes a built-in timeframe check. If applied to a timeframe other than 1-minute, a visual warning will appear on the chart to ensure the logic remains consistent with its intended design.

Details

The script integrates three distinct technical concepts to provide a robust scalping framework:

1. Williams %R: Acts as a sensitive momentum oscillator. By using a long 140-period setting, it filters for extreme oversold/overbought levels (-94 and -6) while using mid-range levels (-40 and -60) to deactivate signals if the trend loses steam.
2. MACD: Provides the execution timing. Rather than simple signal line crosses, this strategy looks for histogram transitions (positive after negative) to confirm immediate momentum shifts.
3. SMA: Functions as a trend filter. By requiring price to be above the SMA for longs and below for shorts, it ensures traders do not scalp against the immediate short-term trend.

Settings

Indicators

• Williams Length: The lookback period for the Williams %R calculation (Default: 140).
• MACD Fast Length: The short-term EMA period for MACD (Default: 24).
• MACD Slow Length: The long-term EMA period for MACD (Default: 52).
• MACD Signal Length: The smoothing period for the MACD signal line (Default: 9).
• SMA Length: The period for the Simple Moving Average trend filter (Default: 7).

FAQ

How do I access Scalping with Williams %R, MACD, and SMA (1m)?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Can this be used on higher timeframes?

While the logic is functional on any timeframe, the script is specifically optimized and coded with a 1-minute timeframe check. Using it on higher timeframes may require adjusting the period inputs to maintain effectiveness.

What do the "Deactivate" conditions do?

The deactivation logic resets the "active" signal state if price moves too far into the opposite zone (e.g., Williams %R crossing -40 for buys), preventing entries after the initial momentum surge has already passed.