Sperman Scalping Dot
- Indicadores
- Andrey Kozak
- Versão: 1.0
- Ativações: 20
Sperman Scalping Dot will be useful for traders as it helps identify potential price reversals on the chart by using a combination of overbought and oversold indicators, as well as divergences between closing prices and price extremes. The primary goal of this indicator is to visualize moments when a trend reversal is likely, giving the trader an opportunity to enter or exit a trade in time.
How to use the indicator:
Identifying Overbought/Oversold Conditions: The indicator uses overbought and oversold zones to help determine when the price has reached extremes and is ready for a reversal. The overbought and oversold levels can be adjusted through the settings (OverboughtLevel and OversoldLevel).
Detecting Divergences: Divergences between the closing price and price extremes (highs and lows) signal a possible reversal. The indicator looks for such discrepancies and displays arrows on the chart: a blue arrow indicates a potential buy (upward reversal), while a red arrow indicates a potential sell (downward reversal).
Entry/Exit Points: Arrows on the chart appear at points where reversals are likely and help traders identify moments for opening or closing positions: A blue arrow (at the bottom of the chart) indicates a potential buy signal. A red arrow (at the top of the chart) indicates a potential sell signal.
Volatility Analysis: The indicator also takes into account volatility (through the VolatilityThreshold parameter), which helps filter out false signals and makes the indicator more accurate in volatile market conditions.
Benefits of Using the Indicator:
- Simple Visualization: Arrows on the chart provide instant visual signals to the trader, allowing for quick responses to reversals.
- Adaptability: Analysis parameters can be adjusted (the number of bars analyzed, overbought/oversold thresholds, etc.), making the indicator flexible for different market conditions.
- Signal Filtering: By analyzing volatility and divergences, the indicator helps avoid false signals, potentially improving the accuracy of trading decisions.
Traders can apply this indicator to the chart and monitor the appearance of arrows to make decisions on opening or closing positions based on the market situation.
Indicator Settings:
- BarsToCheck = 100 – the number of bars to analyze on the chart.
- ArrowOffset = 10 – the offset of arrows from the high or low to avoid visual overlap with the price.
- VolatilityPeriod = 5 – the period for calculating market volatility.
- VolatilityThreshold = 1.0 – the multiplier for the standard deviation threshold to determine high or low volatility.
- OverboughtOversoldPeriod = 14 – the period for calculating overbought and oversold zones.
- OverboughtLevel = 78 and OversoldLevel = 22 – the overbought and oversold levels that indicate when the price has likely reached extreme values.