Scalping Candle [Crak x MMT]

The Scalping Candle [Crak x MMT] indicator identifies potential bullish and bearish engulfing patterns to highlight short-term scalping opportunities on price charts.

Usage

The Usage section describes how the script can be used to identify potential reversal points in the market. Traders can apply this tool to any timeframe, though it is optimized for the 15-minute chart.

• Bullish Signals: A green upward arrow appears below a candle when the current low is at or below the previous low and the close is above the previous candle's midpoint.
• Bearish Signals: A red downward arrow appears above a candle when the current high is at or above the previous high and the close is below the previous candle's midpoint.
• Bias Filtering: Users can restrict signals to only show bullish or bearish setups depending on the prevailing market trend.

Details

The script operates by comparing the current candle's range and closing price against the previous candle's low, high, and midpoint (calculated as the average of the high and low).

It includes advanced logic such as a Body Filter, which requires the current candle's body to fully engulf the previous candle's body, and a Wick Filter, which limits the size of the opposite wick (the "noise") as a percentage of the total candle body. This ensures that signals are only generated when there is significant directional momentum. The tool also utilizes multi-timeframe functionality, allowing users to track engulfing patterns from higher timeframes on their current chart.

Settings

• Bias Filter: Choose between 'Neutral' (all signals), 'Bullish' (only buy signals), or 'Bearish' (only sell signals).
• Show Latest Signal Only: When enabled, the indicator will only display the most recent signal on the chart to reduce clutter.
• Timeframe: Allows the user to select the timeframe from which the candle data is pulled.
• Body Engulfs Previous Candle: An advanced filter that ensures the current candle body is larger than and overlaps the previous candle body.
• Max Opposite Wick Size %: Sets a maximum threshold for the wick against the direction of the trade to ensure strong closing momentum.

FAQ

How do I interpret the arrows on the chart? A green upward arrow suggests a potential bullish reversal, while a red downward arrow suggests a potential bearish reversal based on engulfing logic.

Can I use this on any timeframe? Yes, the indicator can be applied to any timeframe. It also includes a setting to pull data from a specific higher timeframe regardless of your current chart view.

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