Enhanced Scalping Indicator

Enhanced Scalping Indicator - Professional Multi-Confirmation Trading System

Overview
The Enhanced Scalping Indicator is a sophisticated trading tool designed for short-term traders seeking high-probability entry and exit signals. This indicator combines multiple technical analysis techniques with adaptive market conditions to filter noise and identify optimal trading opportunities.

Key Features

🎯 Multi-Confirmation Signal System

• -Enhanced RSI with Adaptive Thresholds: Dynamic overbought/oversold levels that adjust based on market volatility (ATR)
  
• - Higher Timeframe Confirmation: Uses 1-hour RSI to validate signals from lower timeframes
  
• - Volume-Weighted Momentum: Incorporates volume analysis to confirm price movements
  
• - Market Structure Analysis: Evaluates price position within recent 20-bar range
  

📊 Advanced Signal Generation

• - Buy Signals: Triggered when RSI is oversold with upward momentum, confirmed by higher timeframe bearish conditions and strong volume
  
• - Sell Signals: Activated when RSI is overbought with downward momentum, validated by higher timeframe bullish conditions and high volume
  
• - Exit Signals: Smart exit conditions based on RSI mean reversion and momentum shifts
  

🔄 Divergence Detection (Optional)

• - Bullish Divergence: Identifies when price makes lower lows while RSI makes higher lows
  
• - Bearish Divergence: Spots when price makes higher highs while RSI makes lower highs
  
• - Volume Confirmation: All divergence signals require above-average volume for validation
  

⚙️ Customizable Parameters

• - RSI Settings: Adjustable length (default: 14) and source
  
• - Moving Average Options: Choose from SMA, EMA, SMMA, WMA, VWMA, or Bollinger Bands
  
• - Higher Timeframe: Configurable confirmation timeframe (default: 1 hour)
  
• - ATR Period:[
  

/b] Volatility measurement period for adaptive thresholds

📈 Visual Elements

• - Dynamic Threshold Lines: Adaptive overbought/oversold levels
  
• - Signal Shapes: Clear buy/sell and exit signals on chart
  
• - Background Highlighting: Color-coded background for active signals
  
• - Real-time Information Table: Displays current RSI, higher timeframe RSI, volatility ratio, market position, and momentum
  

🚨 Alert System

• Complete alert functionality for:
  
• - Enhanced buy signals
  
• - Enhanced sell signals
  
• - Long position exits
  
• - Short position exits
  

Best Use Cases

• - Scalping: 1-5 minute timeframes for quick trades
  
• - Day Trading: 15-30 minute timeframes for intraday positions
  
• - Swing Trading: Higher timeframes with divergence detection enabled
  

Market Conditions
Works effectively in:

• - Trending Markets: Momentum and higher timeframe filters reduce false signals
  
• - Range-bound Markets: Adaptive thresholds adjust to market volatility
  
• - High Volume Sessions: Built-in volume filters ensure signal quality
  

Strategy Integration
This indicator works well with:

• - Support/resistance levels
  
• - Price action analysis
  
• - Risk management rules (stop losses, position sizing)
  
• - Market session awareness (built-in US market hours filter)
  

Technical Implementation

• - Built on Pine Script v6
  
• - Utilizes proper RMA calculations for RSI
  
• - Implements consistent historical data access
  
• - Optimized for performance with minimal repainting
  

Risk Disclaimer
This indicator is a technical analysis tool and should not be used as the sole basis for trading decisions. Always combine with proper risk management, fundamental analysis, and your trading strategy. Past performance does not guarantee future results.

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Perfect for: Scalpers, day traders, and swing traders looking for a comprehensive, multi-confirmation trading system with built-in risk management features.