Hermes Scalping Study

The Hermes Scalping Study indicator provides traders with a simple yet effective tool for identifying potential scalping opportunities based on price action relative to historical high and low extremes. It identifies trend shifts by comparing the current close against moving averages of previous price boundaries, offering clear visual signals for entry points.

Usage

The indicator displays a dynamic stop line on the chart that changes color based on the detected trend. When the price crosses above this stop line, a "Long" signal is generated, typically represented by a green triangle below the bar. Conversely, when the price crosses below the stop line, a "Short" signal is triggered, indicated by a red triangle above the bar.

For best results, this tool should be used in volatile market conditions where price movement is sufficient to clear the calculated bands. It can be applied to any timeframe, though it is specifically optimized for shorter-term scalping strategies.

Details

The script utilizes simple moving averages (SMA) of high and low prices over a user-defined length to establish a baseline. A "swing" state is determined by comparing the current closing price to a historical offset of these averages.

• Stop Level Calculation: The indicator tracks the highest high or lowest low over the specified length depending on the current swing direction.
• Signal Logic: Trading signals are generated when a short-term SMA of the source price (Base Length) crosses the calculated stop level.

Settings

• Length: Determines the lookback period used for calculating the SMAs of highs and lows, as well as the highest high and lowest low values.
• Value: Sets the historical offset (bars back) used to compare the current close against the high/low averages.
• Base Length: The period for the SMA of the source price. A value of 1 effectively uses the raw source price.
• Source: Defines the price data used for the signal calculation (e.g., Close, Open, HL2).

FAQ

How do I use the signals for entries?

Signals are triggered when the price (or its short-term average) crosses the stop line. A Long signal suggests an upward momentum shift, while a Short signal suggests downward momentum.

Does this work on all assets?

Yes, the Hermes Scalping Study can be applied to any asset class, including stocks, forex, and crypto, provided there is sufficient volatility to drive price action beyond the calculated levels.

How can I access this tool?

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