Scalping Entry/Exit Indicator

The Scalping Entry/Exit Indicator indicator provides a comprehensive system for identifying high-probability scalp opportunities by combining classic candlestick patterns with dynamic risk management levels.

Usage

The Scalping Entry/Exit Indicator is designed for active traders looking for quick reversal and trend-continuation signals. When a valid pattern is detected, the script highlights the opportunity directly on the chart:

• Bullish Signals: When a Bullish Hammer, Engulfing, or Morning Star pattern is identified, the chart background turns green, a "BUY" label appears below the bar, and specific Take-Profit (TP) and Stop-Loss (SL) levels are projected using dotted green lines.
• Bearish Signals: When a Shooting Star, Bearish Engulfing, Evening Star, or a simplified Head & Shoulders pattern is detected, the background turns red, a "SELL" label appears above the bar, and TP/SL levels are projected using dotted red lines.

Traders can use these visual cues to execute trades with pre-calculated risk parameters based on current market volatility.

Details

The script operates by analyzing the relationship between the body and wicks of individual candles to classify patterns. It utilizes the Average True Range (ATR) to ensure that the suggested risk levels adapt to current market conditions rather than remaining static.

• Candlestick Logic: The indicator checks for specific ratios (e.g., lower wick vs. body size for Hammers) and multi-candle sequences (e.g., Morning/Evening Stars).
• Head & Shoulders: A simplified version of this classic reversal pattern is included, which looks for a central peak higher than two surrounding peaks within a specified lookback window.
• Risk Management: Stop-loss levels are placed 1x ATR away from the entry price, while take-profit levels are calculated by multiplying the ATR by the user-defined Risk-Reward Ratio.

Settings

• Risk-Reward Ratio: Determines the distance of the Take-Profit level relative to the Stop-Loss.
• ATR Period: Sets the lookback period for the Average True Range used to calculate volatility-based exit levels.
• Pattern Lookback (bars): Defines the window size used to identify the simplified Head & Shoulders pattern.

FAQ

How do I use the SL and TP lines?

The lines are generated at the moment of the signal and extend for 5 bars to provide a visual reference for your trade execution.

Can I set alerts for these signals?

Yes, the indicator includes alert conditions for both Buy and Sell signals, which can be configured to notify you via the TradingView alert system.

How can I access Scalping Entry/Exit Indicator?

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