Scalping EMA ADX RSI with Buy/Sell Alerts

The Scalping EMA ADX RSI with Buy/Sell Alerts indicator is a comprehensive momentum and trend-following tool designed to identify high-probability scalping opportunities by combining multi-oscillator filters with trend-following moving averages.

Usage

The tool is primarily used for identifying entry points in trending markets, particularly on lower timeframes like the 5-minute chart. A "Trend Ready" signal, represented by a blue line at the bottom of the chart, indicates that the ADX has crossed the user-defined threshold, suggesting sufficient volatility for a trade.

• Long Entry: Occurs when the price is above the selected Moving Average (if enabled), the RSI is or has recently been in an oversold state, the ADX indicates a strong trend, and the current candle breaks the high of the previous candle.
• Short Entry: Occurs when the price is below the selected Moving Average (if enabled), the RSI is or has recently been in an overbought state, the ADX indicates a strong trend, and the current candle breaks the low of the previous candle.

The script also features built-in alerts for "Buy", "Sell", or both, which trigger when all confluent conditions are met.

Details

The script integrates three core technical concepts to filter market noise:

1. Trend Filter: A customizable Moving Average (supporting 10 different types including EMA, SMA, HMA, and ZLSMA) ensures trades are taken in the direction of the macro trend.
2. Momentum Filter: A fast RSI (default length 3) identifies short-term exhaustion points. The script checks the current and previous two candles to ensure potential late entries are captured.
3. Volatility Filter: An ADX calculation ensures that signals are only generated when the market is not ranging, using a "Trend Ready Limit" to validate trend strength.

Settings

MA Settings

• MA Type: Select from 10 different Moving Average types (EMA, SMA, WMA, VWMA, HMA, RMA, DEMA, TEMA, LSMA, ZLSMA).
• MA Source: The price source used for the MA calculation.
• MA Length: The lookback period for the trend filter.
• LSMA Offset: Specific offset for Least Squares Moving Average calculations.
• Enable MA Rule: Toggles whether the price must be above/below the MA for a signal to trigger.

RSI Settings

• RSI Source/Length: Configures the Relative Strength Index parameters.
• RSI Overbought/Oversold Level: Defines the thresholds for momentum exhaustion.

ADX Settings

• ADX Smoothing/DI Length: Controls the internal smoothing of the Average Directional Index.
• Trend Ready Limit: The minimum ADX value required to authorize a trade signal.

UI Settings

• Draw Trend Ready On Chart: Toggles the visual representation of the ADX threshold at the bottom of the chart.

FAQ

How do I use the "Trend Ready" feature?

The "Trend Ready" feature monitors the ADX. When the ADX is above your set limit, a blue marker appears at the bottom of the chart, signaling that the market is trending strongly enough for scalping entries.

Which timeframe is best for this indicator?

While the script is highly customizable, it was originally designed for the 5-minute timeframe. Users are encouraged to adjust the MA and RSI settings when moving to higher timeframes.

How can I access Scalping EMA ADX RSI with Buy/Sell Alerts?

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