Ultimate Scalping Strategy v2

The Ultimate Scalping Strategy v2 indicator provides a comprehensive trading framework designed for low-timeframe execution using a filtered EMA crossover system. It combines trend confirmation through VWAP with momentum-based signals to help traders identify high-probability intraday scalping opportunities.

Usage

The strategy generates entry signals based on the interaction between a Fast EMA and a Slow EMA. A bullish signal occurs when the Fast EMA crosses above the Slow EMA, provided the price is above the VWAP. Conversely, a bearish signal occurs when the Fast EMA crosses below the Slow EMA while the price is below the VWAP.

Confirmation Filters

Users can refine entries by enabling optional filters:

• Price Action: Requires an engulfing candle at the crossover point to confirm immediate pressure.
• Volume: Requires the entry candle volume to exceed its moving average, ensuring market participation.

Management and Exits

The tool includes automated exit logic that can be visualised directly on the chart:

• ATR-Based Targets: Automatically calculates Stop Loss and Take Profit levels based on market volatility.
• Trailing Stop: An optional feature that replaces fixed targets with a dynamic trail once price moves a specified distance in favor of the trade.
• Reversal Logic: Optionally closes existing positions when a valid signal in the opposite direction is detected.

Details

The script uses a combination of Exponential Moving Averages (EMA) for trend detection and Volume-Weighted Average Price (VWAP) as a benchmark for intraday value. By ensuring signals only occur on the "correct" side of VWAP, the strategy aligns entries with the broader intraday sentiment. The implementation also features advanced plotting logic that draws active SL/TP lines that appear upon entry and clear upon trade closure, facilitating better visual risk management.

Settings

Main Indicator Settings

• Fast EMA Length: Sets the period for the reactive moving average.
• Slow EMA Length: Sets the period for the baseline moving average.

Trade Direction Settings

• Allow Longs/Shorts: Toggles to restrict the strategy to specific trade directions.

Confirmation Filters

• Use Price Action (Engulfing): Enables the requirement for engulfing candle confirmation.
• Use Volume Confirmation: Enables the requirement for a volume spike relative to its MA.
• Volume MA Length: The lookback period for the volume moving average.

Exit Logic Settings

• ATR Length: The period used to calculate the Average True Range for exits.
• Stop Loss/Take Profit ATR Multipliers: Determines the distance of exit levels from the entry price.
• Exit on Opposite Signal: Toggles whether a position should close upon a reversal signal.
• Trailing Stop Settings: Includes toggles for the trailing stop, activation thresholds, and trailing distance.

FAQ

How do I use the Ultimate Scalping Strategy v2?

The strategy is best applied on 1-minute to 5-minute charts. Look for EMA crossovers that occur in alignment with the VWAP filter, and optionally use the volume and price action toggles to filter out noise.

Can I automate this strategy?

Yes, the script includes built-in alert conditions for long entries, short entries, and trade closures, which can be linked to external execution services via webhooks.

How do I access Ultimate Scalping Strategy v2?

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