Supertrend & CCI Strategy Scalp

The Supertrend & CCI Strategy Scalp indicator is a trend-following tool designed to capture scalping opportunities by combining dual-factor trend detection with momentum-based oscillators.

Usage

The strategy utilizes a multi-layered approach to filter market noise and identify high-probability entry points. It relies on a "long factor" Supertrend to establish the primary market direction and a "short factor" Supertrend to identify local deviations.

• Long Entries: Occur when the price is above the long-term Supertrend (bullish context), below the short-term Supertrend (pullback), and the smoothed CCI is below the oversold level (extreme exhaustion).
• Short Entries: Occur when the price is below the long-term Supertrend (bearish context), above the short-term Supertrend (relief rally), and the smoothed CCI is above the overbought level.

Users can observe the plot lines on the chart to determine the current state of both Supertrend calculations. The strategy automatically manages entries and exits based on these confluence rules.

Details

The strategy calculates two distinct Supertrend values using different factor settings. By using a larger factor for the base trend and a smaller factor for the entry trigger, the script aims to "buy the dip" within a confirmed uptrend or "sell the rip" within a downtrend.

To refine the signals further, a Commodity Channel Index (CCI) is calculated and smoothed using a selectable moving average method (SMA, EMA, SMMA, WMA, or VWMA). This smoothing process helps eliminate false momentum spikes, ensuring that entries only trigger during significant oversold or overbought conditions relative to the trend.

Settings

SuperTrend 1 & 2

• ATR Length: Determines the lookback period for the Average True Range used in the Supertrend calculation.
• Factor: The multiplier applied to the ATR to set the distance of the trend line from the price.

CCI

• CCI Level: Sets the threshold for overbought and oversold conditions (e.g., 100).
• CCI Length: The lookback period for the CCI calculation.
• Source: The price data used for the CCI (default is HLC3).

Smoothing

• Method: Selects the type of moving average used to smooth the CCI line (SMA, EMA, SMMA, WMA, or VWMA).
• Length: The lookback period for the smoothing moving average.

FAQ

How do I access the Supertrend & CCI Strategy Scalp?

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

Can I use this strategy on any timeframe?

While designed for scalping, the logic is applicable to various timeframes; however, users should tune the ATR factors and CCI lengths to match the volatility of their specific chart.

What causes the strategy to exit a trade?

The strategy closes positions when the trend conditions reverse or when the CCI reaches the opposite threshold, indicating that the momentum move has reached its target or exhausted its strength.