This script can be used to day trade SPY ( S&P ), Forex Currencies, Stocks, Bitcoin and pretty much anything out there. It was extensively tested trading live on 15minute timeframe with great results, it can be used with other timeframes as well.
Indicators:
- Regular Signals (red/green) – trade signal arrows, includes alerts
- Risky Signals (orange/olive) – trade signal arrows, includes alerts
- Optimal Trade Entrance Area - target at where to enter the trade with minimal risk and maximum profit
As the signals explained, there are regular and risky signals, which are calculated per different algorithms. Based on the test run, risky signals will appear less and be more risky, but usually spot longer bigger runs!
The original idea of the script is to provide the trader with an Optimal Trade Entrance Area to reduce the risk and maximize the profit. After you receive a signal/alert, wait for the price to re-trace to the Optimal Trade Entrance Area line, which will be shown on the chart. If the price does not reverse - it's best to not open a position. (Remember that the best trade is – no trade!).
If you don’t know how to divide up your position - here is an example on how I take profits between the price targets:
- Open position with buying a multiple of x3 contracts
- Sell 1/3 of the position at first price target and move my SL to entry
- Sell 1/3 of the remaining position at a second price target
- Sell the rest of the position at the third price target or scale out slowly if the trend is still strong
Also, keep an eye on the breakouts, especially if they go along the script signals as with breakouts, there is a good potential for a bigger move.
Indicators:
- Regular Signals (red/green) – trade signal arrows, includes alerts
- Risky Signals (orange/olive) – trade signal arrows, includes alerts
- Optimal Trade Entrance Area - target at where to enter the trade with minimal risk and maximum profit
As the signals explained, there are regular and risky signals, which are calculated per different algorithms. Based on the test run, risky signals will appear less and be more risky, but usually spot longer bigger runs!
The original idea of the script is to provide the trader with an Optimal Trade Entrance Area to reduce the risk and maximize the profit. After you receive a signal/alert, wait for the price to re-trace to the Optimal Trade Entrance Area line, which will be shown on the chart. If the price does not reverse - it's best to not open a position. (Remember that the best trade is – no trade!).
If you don’t know how to divide up your position - here is an example on how I take profits between the price targets:
- Open position with buying a multiple of x3 contracts
- Sell 1/3 of the position at first price target and move my SL to entry
- Sell 1/3 of the remaining position at a second price target
- Sell the rest of the position at the third price target or scale out slowly if the trend is still strong
Also, keep an eye on the breakouts, especially if they go along the script signals as with breakouts, there is a good potential for a bigger move.
Versionsinformation:
* Added take-profit area, which is calculated based off the signal candle body. I would suggest to use the most recent support & resistance areas, but for scalping you can go off by the take profit marks.
Please note: it will show potential take profit for each candle, even if it is not a signal candle
Please note: it will show potential take profit for each candle, even if it is not a signal candle
Versionsinformation:
* Minor fix, working on additional fixes
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* Cleaned up the script and now the TP line per signal candle body can be turned on/ff
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* More cleanup
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* More cleanup
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* Added "progressive" strategy approach strategy: when price enters inside the "cloud" (in-between the MA lines) > a label/alert will notify you to get ready, so that once and if price starts getting out from inside the "cloud" > you can open a position
Versionsinformation:
* Added automated alerts for "progressive" strategy, in order to add LONG/SHORT "Get Ready" alerts, right-click the chart, select Add alert, next to Condition select the indicator "EMA Cloud Scalp" > "Any alert() function call) > Create
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* Minor bug fix
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* optimized the whole indicator for easier understanding
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* Alerts for scalp strategy fix - will only trigger during the session schedule selected
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* Bug fix
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* Another fix
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* Updated signals showing outside of selected schedule
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* Included optimal global trader entrance line for every last closed candle bar per custom request - it can be turned on/off in script settings
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* Accidentally replaced the introductory chart... replacing it with a better one
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* Minor update
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* Set to default to remove all the previous signals optimal trade entrance/SL/TP lines for cleaner look - this can be turned on if needed within indicator settings
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* Cleaned up a bit
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* Another cleanup
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* Added options trading labeling for ease of trading options
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* NOTE: You may get a repaint warning when setting up the alerts!
Here is why: If you will use the SCALP STRATEGY, when you receive an alert to prepare to open the position > price is hitting the critical area LIVE, so the condition for the "scalp" label is true, you will also receive an alert (which is set to trigger "Once Per Bar") and a label will be shown. If and when on that same candle bar > price goes backwards (where you are expected to open the position per strategy) the condition to prepare for a position is technically no longer true, which basically is repainting, however in reality it does not affect your trading results as the label which sets you to prepare to open the position no longer matters.
Here is why: If you will use the SCALP STRATEGY, when you receive an alert to prepare to open the position > price is hitting the critical area LIVE, so the condition for the "scalp" label is true, you will also receive an alert (which is set to trigger "Once Per Bar") and a label will be shown. If and when on that same candle bar > price goes backwards (where you are expected to open the position per strategy) the condition to prepare for a position is technically no longer true, which basically is repainting, however in reality it does not affect your trading results as the label which sets you to prepare to open the position no longer matters.
Versionsinformation:
* Fixed an alert bug
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* More detailed alert wording
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* Minor fix
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* Lots of clean up and new features:
- So now there are 2 approaches or strategies:
1) Progressive (where you "catch" the trade when the price exits EMA Cloud after it entered it)
2) Conservative (where candle fully closes bouncing off the EMA Cloud)
- For Conservative, there is a whole trade engine included where signals can be filtered by:
----- ATR/EMA trend confirmation
----- Take Profit line per Highest High / Lowest Low (fully customizable) or per simple distance of price
----- End of day (at market close or before power hour US Session) position close label/alert
NOTE: Trade Engine is only for Conservative approach, however you can still use ATR/EMA trend confirmation and/or Take Profit lines yourself!
- So now there are 2 approaches or strategies:
1) Progressive (where you "catch" the trade when the price exits EMA Cloud after it entered it)
2) Conservative (where candle fully closes bouncing off the EMA Cloud)
- For Conservative, there is a whole trade engine included where signals can be filtered by:
----- ATR/EMA trend confirmation
----- Take Profit line per Highest High / Lowest Low (fully customizable) or per simple distance of price
----- End of day (at market close or before power hour US Session) position close label/alert
NOTE: Trade Engine is only for Conservative approach, however you can still use ATR/EMA trend confirmation and/or Take Profit lines yourself!
Versionsinformation:
* Updating the preview
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* Updated CONSERVATIVE STRATEGY with Elliot Wave Osicillator signals confirmation and back-testing table which shows amazing results on 1M/3M, unfortunately TradingView is very limited, so for 1M timerframe it can only show signals as far as about 1 month... on bigger than 3M timeframes it does not show very good results, but this is specifically a scalping strategy so IMO it should work very well!
Versionsinformation:
* Minor fixes
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* CONSERVATIVE approach - added an option to clean up signals even more, to skip signals when candle covers the whole EMA Cloud, which may happen when there are huge candles or the EMA Cloud is very thin, meaning there is uncertainty in direction!
Versionsinformation:
************ Adding newer description/explanation with all the newer features recently added to the indicator:
There are 2 strategies: PROGRESSIVE and CONSERVATIVE. Each can be "checked/unchecked" (turned on/off to show on chart)
1) PROGRESSIVE > labels/alerts when price enters EMA Cloud, so you can open position when it exits > this is for quick scalping, works well on 1/3/5/15min timeframes
2) CONSERVATIVE > labels/alerts when candle closes "bouncing" off the EMA cloud. This one has much more cool additional features, like candle analysis (exclude signals with doji, confirm signal with Elliot Wave Oscillator and/or ATR, and much more!). This one works great on smaller timeframes as well.
Overall, here is what was added recently:
* Alerts for PROGRESSIVE STRATEGY approach when price is entering the EMA Cloud, so you can prepare for opening a position
* Updated CONSERVATIVE STRATEGY (this is separate from the PROGRESSIVE STRATEGY scalping approach) with a full trading engine, which adds Open signals along with TP (take profit), SL (stop loss) and EOD/EODpw (end of day position close at US market close or before power hour) with alerts
Additional CONSERVATIVE STRATEGY features:
- Signals labels transparency (can be turned off if desired)
- Elliot Wave Oscillator price direction confirmation (powerful tool cleaning out many bad uncertain signals)
- Ability to chose regular/risk or both signals
- Customizable ATR confirmation of the price movement (Example: ATR bullish > bullish signal is confirmed)
- Stop-loss candle body percentage confirmation (if candle breaking into stop-loss (EMA solid slow moving average), so it is an uncertain candle, like a doji or a star or a hammer > it will not be considered a stop-loss
- TP1 (take profit) hit via either touch (price simply touching it) or a close (candle must close breaking the TP1 line beyond it) approach
** The HHLL take profit line can be customized as desired. Also, there is an option to use a manual price distance for TP1 instead, make sure you set it underneath (for SPY, 0.50 would mean that after a position is opened per signal, TP1 line will be set exactly 0.50 cents of SPY price away)
There are 2 strategies: PROGRESSIVE and CONSERVATIVE. Each can be "checked/unchecked" (turned on/off to show on chart)
1) PROGRESSIVE > labels/alerts when price enters EMA Cloud, so you can open position when it exits > this is for quick scalping, works well on 1/3/5/15min timeframes
2) CONSERVATIVE > labels/alerts when candle closes "bouncing" off the EMA cloud. This one has much more cool additional features, like candle analysis (exclude signals with doji, confirm signal with Elliot Wave Oscillator and/or ATR, and much more!). This one works great on smaller timeframes as well.
Overall, here is what was added recently:
* Alerts for PROGRESSIVE STRATEGY approach when price is entering the EMA Cloud, so you can prepare for opening a position
* Updated CONSERVATIVE STRATEGY (this is separate from the PROGRESSIVE STRATEGY scalping approach) with a full trading engine, which adds Open signals along with TP (take profit), SL (stop loss) and EOD/EODpw (end of day position close at US market close or before power hour) with alerts
Additional CONSERVATIVE STRATEGY features:
- Signals labels transparency (can be turned off if desired)
- Elliot Wave Oscillator price direction confirmation (powerful tool cleaning out many bad uncertain signals)
- Ability to chose regular/risk or both signals
- Customizable ATR confirmation of the price movement (Example: ATR bullish > bullish signal is confirmed)
- Stop-loss candle body percentage confirmation (if candle breaking into stop-loss (EMA solid slow moving average), so it is an uncertain candle, like a doji or a star or a hammer > it will not be considered a stop-loss
- TP1 (take profit) hit via either touch (price simply touching it) or a close (candle must close breaking the TP1 line beyond it) approach
** The HHLL take profit line can be customized as desired. Also, there is an option to use a manual price distance for TP1 instead, make sure you set it underneath (for SPY, 0.50 would mean that after a position is opened per signal, TP1 line will be set exactly 0.50 cents of SPY price away)
Versionsinformation:
* Added additional S&R per order blocks (can be hidden in the indicator settings if desired)
Versionsinformation:
* Added alert option for when the dotted (fastMA) EMA cloud line changes color, alert can be turnd off by unchecking it in the indicator settings
Trading like a machine!