ITG Scalper

The ITG Scalper indicator provides a momentum-based trading framework that utilizes a Triple Exponential Moving Average (TEMA) to identify local trend shifts and generate actionable buy and sell signals.

Usage

The Usage section focuses on how the TEMA and the optional MACD filter interact to produce trading signals. The script is primarily designed for scalping or swing trading by identifying transitions in local price momentum.

• Trend Identification: The script uses a color-coded TEMA line. A green line indicates a bullish local trend, while a red line indicates a bearish trend.
• Signal Execution: Buy signals are triggered when the TEMA shifts from bearish to bullish. Sell signals occur when the trend reverses.
• Profitability Visualization: Sell signals are color-coded based on the outcome of the trade relative to the previous buy price. A green label indicates a profitable exit, while a blue/neutral label indicates a loss.
• Noise Filtering: Users can enable a MACD-based noise filter to confirm signals. If enabled, a buy signal will only trigger if the MACD is above its signal line, potentially reducing false entries during choppy market conditions.
• Performance Tracking: By enabling the percentage change option, the tool displays the live percentage gain or loss from the last active signal.

Details

The ITG Scalper is constructed using a Triple Exponential Moving Average (TEMA), which offers lower latency than a standard EMA by reducing the lag typically associated with moving averages. The calculation involves three layers of EMA smoothing: 3 * (EMA1 - EMA2) + EMA3.

A key technical feature is the use of persistent variables to track buyprice and sellprice. This allows the script to compare current exit prices with previous entry prices regardless of the number of bars elapsed. While the TEMA calculation stays native to the chart resolution, the filter component can be set to a custom timeframe. Note that using a timeframe higher than the current chart for the filter may introduce repainting.

Settings

General Settings

• Plot TEMA?: Toggles the visibility of the TEMA line on the chart.
• Green/redshift on/off?: Enables or disables the dynamic color changing of the TEMA line based on trend direction.
• Show buy/sell?: Controls whether the buy and sell signals are displayed.
• Use labels?: Switches between using decorative labels or standard plot shapes for signals.
• Show % change since last buy/sell: Displays the current percentage return relative to the last signal price.

Filter Settings

• Noise filter on/off?: Activates the MACD-based requirement for signals.
• Use Current Chart Resolution for filter?: When checked, the filter uses the chart's current timeframe.
• Use Different Timeframe for filter?: Sets a specific timeframe for the MACD filter (e.g., 60 minutes) if the "Current Chart Resolution" box is unchecked.

Calculation Periods

• TEMA period: Sets the length for the Triple EMA calculation.
• Filter fast length: The fast EMA period for the MACD filter.
• Filter slow length: The slow EMA period for the MACD filter.
• Filter signal length: The smoothing period for the MACD signal line.

FAQ

How can I reduce the number of false signals in a sideways market? Enable the "Noise filter" in the settings. This ensures that buy signals only occur when MACD momentum is positive, helping to filter out minor TEMA fluctuations.

Why does the sell signal change color? The sell signal is programmed to be green if the closing price is higher than the previous buy price (profit) and blue/neutral if it is lower (loss).

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