Intraday BUY/SELL

The Intraday BUY/SELL indicator provides scalping signals based on SMA trends and RSI extremes to help traders identify potential trend reversals and momentum entries in high-volume markets.

Usage

The indicator is designed primarily for intraday scalping, with a specific optimization for Crude Oil Future contracts on the 3-minute timeframe. It generates three primary types of visual cues:

• BUY (B) and SELL (S) Labels: These signals appear when the price crosses the Simple Moving Average (SMA) under specific candle conditions. To confirm an entry, traders should look for the subsequent candle to break the high of the "Buy" alert candle or the low of the "Sell" alert candle.
• Reversal (!) Labels: These icons indicate potential trend exhaustion based on the RSI reaching overbought or oversold levels. A reversal label at the top suggests a bearish pivot, while a label at the bottom suggests a bullish pivot.
• Dynamic SMA Color: The baseline SMA changes color to reflect market conditions. It typically turns green (bullish) when the price is consistently above the average and red (bearish) when below, providing an immediate filter for trend direction.

Details

The script combines momentum and trend-following logic to filter out noise in intraday charts. It utilizes a 70-period Simple Moving Average as a trend baseline and a 14-period RSI to detect overextended price action.

The logic includes a "Gap Value" calculation, which ensures that signals are only generated when candles exhibit sufficient range relative to their recent volatility. This prevents signals from appearing during periods of extreme consolidation or low liquidity. Buy and Sell signals are further refined by checking the previous candle's position relative to the SMA, ensuring that momentum is actively shifting before a label is plotted.

Settings

• RSI Length: The lookback period used for calculating the Relative Strength Index (default is 14).
• Higher Value of RSI: The overbought threshold (default is 80) used to trigger bearish reversal alerts.
• Lower Value of RSI: The oversold threshold (default is 20) used to trigger bullish reversal alerts.
• SMA Length: The lookback period for the Simple Moving Average used to determine the primary trend (default is 70).

FAQ

Which assets and timeframes work best with this indicator? While optimized for 3-minute Crude Oil Futures, the script can be applied to any high-volume instrument, including major forex pairs or index futures, provided there is sufficient liquidity to support scalping.

How is a signal confirmed for entry? Traders typically wait for price action to breach the extremes of the signal candle. For a Buy signal, the price should break above the signal candle’s high; for a Sell signal, it should break below the signal candle’s low.

How can I access the Intraday BUY/SELL indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.