5EMA_BB_Scalping

What?

In this forum we have earlier published a public scanner called 5EMA BollingerBand Nifty Stock Scanner, which is getting appreciated by the community. That works on top-40 stocks of NSE as a scanner.
Whereas this time, we have come up with the similar concept as a stand-alone indicator which can be applied for any chart, for any timeframe to reap the benifit of reversal trading.

How it works?

This is essentially a reversal/divergence trading strategy, based on a widely used strategy of Power-of-Stocks 5EMA.

To know the divergence from 5-EMA we just check if the high of the candle (on closing) is below the 5-EMA. Then we check if the closing is inside the Bollinger Band (BB). That's a Buy signal. SL: low of the candle, T: middle and higher BB.

Just opposite for selling. 5-EMA low should be above 5-EMA and closing should be inside BB (lesser than BB higher level). That's a Sell signal. SL: high of the candle, T: middle and lower BB.

Along with we compare the current bar's volume with the last-20 bar VWMA (volume weighted moving average) to determine if the volume is high or low.
Present bar's volume is compared with the previous bar's volume to know if it's rising or falling.

VWAP is also determined using `ta.vwap` built-in support of TradingView.

The Bolling Band width is also notified, along with whether it is rising or falling (comparing with previous candle).


What's special?

We love this reversal trading, as it offers many benifits over trend following strategies:

1. Risk to Reward (RR) is superior.
   
2. It _Does Hit_ stop losses, but the stop losses are tiny.
   
3. Means, althrough the Profit Factor looks Nahh, however due to superior RR, end of day it ended up in green.
   
4. When the day is sideways, it's difficult to trade in trending strategies. This sort of volatility, reversal strategies works better.
   
5. It's always tempting to go agaist the wind. Whole world is in Put/PE and you went opposite and enter a Call/CE. And turns out profitable! That's an amazing feeling, as a trader :)
   

How to trade using this?
* Put any chart
* Apply this screener from Indicators (shortcut to launch indicators is just type / in your keyboard).
* It will show you the Green up arrow when buy alert comes or red down arrow when sell comes. * Also on the top right it will show the latest signal with entry, SL and target.


Disclaimer
* This piece of software does not come up with any warrantee or any rights of not changing it over the future course of time.
* We are not responsible for any trading/investment decision you are taking out of the outcome of this indicator.