Urban Towers Scalping Strategy

The Urban Towers indicator is a trend-following scalping tool designed for lower timeframes that identifies potential entry points based on specific price action sequences relative to an Exponential Moving Average (EMA) ribbon. It aims to provide traders with a mechanical approach to scalping by highlighting "towers" of price movement that retract into a core moving average area before potentially continuing the trend.

Usage

The Urban Towers tool is primarily used on lower timeframes (such as the 1m or 5m) to catch quick momentum shifts within a broader trend.

• Long Scalp: Identified when price displays three consecutive lower highs (the "tower") where the current low dips below the EMA ribbon (EMA 37), yet the price maintains a close above the baseline EMA 50.
• Short Scalp: Identified when price displays three consecutive higher highs where the current high pushes above the EMA ribbon, yet the price maintains a close below the baseline EMA 50.

Traders typically look for an entry above the signal candle for longs (or below for shorts), with stop losses placed at the opposite side of the signal candle. Common exit strategies include 1:1 risk-to-reward ratios, trailing stops, or psychological price levels.

Details

The script utilizes a specific ribbon of Exponential Moving Averages (37, 39, 41, 44, 47, and 50) to define the trend and the "value" area. This system is based on the scalping methodologies popularized by Navin Prithyani. The logic requires a specific sequence of three bars to form a directional "tower" structure that enters the EMA zone, signifying a temporary pullback. By ensuring the close remains on the correct side of the EMA 50, the indicator attempts to filter for high-probability setups that align with the medium-term trend.

Settings

• EMA 37-50: The script plots a series of EMAs that form a ribbon. The color of this ribbon changes based on whether the fast EMA (37) is above or below the slow EMA (50).
• Buy/Sell Trigger Color: The script highlights the bars that meet the specific Urban Towers criteria to provide visual confirmation of a setup.
• Alerts: The script includes integrated alert conditions for both long and short scalp setups, allowing for notifications without constant screen monitoring.

FAQ

How do I use the Urban Towers indicator?

You can use it to identify mechanical scalping setups on lower timeframes by looking for the highlighted signal bars that occur when price pulls back into the EMA ribbon.

What timeframes are best for this tool?

While it can be used on any timeframe, it is specifically designed as a scalping system for lower timeframes such as the 1-minute, 5-minute, or 15-minute charts.

How can I access Urban Towers?

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