Malama's Scalping

Malama's Scalping Strategy Description
Purpose
"Malama's Scalping" is a strategy designed for traders who want to capitalize on short-term price movements in fast-moving markets. It identifies precise buy and sell opportunities by combining trend analysis, momentum, volume, volatility, and candlestick patterns. This script solves the problem of finding reliable entry and exit points in choppy or unpredictable markets, making it ideal for scalpers—traders who aim to profit from small, quick price changes—while offering built-in risk management through stop-loss and take-profit settings.
How It Works
The strategy uses a blend of popular technical indicators and custom logic to confirm trading signals:
Trend Direction: A 50-period Simple Moving Average (SMA) acts as a trend filter. If the price is above this line, it’s a bullish (buy-friendly) market; if below, it’s bearish (sell-friendly).
Momentum: The Relative Strength Index (RSI) measures price speed over 14 periods. It ensures the market isn’t overbought (RSI < 70) for buys or oversold (RSI > 30) for sells.
Volume: It compares current trading volume to a 20-period average to confirm strong market participation—only high-volume moves trigger signals.
Volatility: The Average True Range (ATR) over 14 periods checks if price swings are big enough (above a user-set minimum, default 2.0) to justify a trade.
Candlestick Patterns: Simple yet effective patterns (e.g., a bullish candle closing higher than the previous day’s close after opening lower) add confirmation to signals.
A buy or sell signal only triggers when all these conditions align, ensuring high-probability trades. Once a signal fires, the strategy automatically places trades with customizable stop-loss (e.g., 1% below entry) and take-profit (e.g., 2% above entry) levels.
How to Use It
Adding to TradingView: Open TradingView, go to the "Pine Editor" at the bottom, paste the script, and click "Add to Chart." You’ll see a blue trend line and buy/sell labels appear.
Configuring Settings: Adjust inputs in the "Settings" menu:
Trend Length (50): Increase for smoother trends, decrease for faster signals.
RSI Length (14): Tweak for sensitivity to momentum.
Stop Loss (1%) and Take Profit (2%): Set based on your risk tolerance.
Volume Length (20): Adjust to filter volume strength.
Volatility Length (14) and Minimum Volatility (2.0): Fine-tune for your asset (e.g., higher for volatile stocks like TSLA).
Interpreting Signals:
A green "Buy" label below a bar means enter a long position.
A red "Sell" label above a bar means enter a short position.
Watch the blue trend line to gauge the bigger picture.
Tips for Beginners: Start with the default settings on a 1- or 5-minute chart for scalping. Test it on a demo account first to get comfortable with the signals.
For Pros: Pair it with your favorite indicators (e.g., Bollinger Bands) or adjust the ATR minimum for specific markets. Use backtesting in TradingView’s "Strategy Tester" to optimize settings.
Originality
What makes "Malama's Scalping" stand out is its multi-filter approach. Unlike basic strategies relying on one or two indicators, it demands agreement across trend, momentum, volume, volatility, and candlestick patterns—reducing false signals and boosting confidence. The built-in automation with customizable risk management also sets it apart, offering a hands-off option for scalpers who want precision without constant monitoring. Plus, its flexibility (e.g., adjustable volatility for stocks like TSLA) makes it adaptable to various assets and timeframes, a rarity in scalping tools.
This strategy bridges the gap between simplicity for beginners and robustness for pros, delivering a unique, all-in-one scalping solution.