Special Indicator for Professional Scalpers! This Indicator Is Game-Changing !

Summary

This video introduces the 'Scalpers Volatility Filter' indicator on TradingView, designed for professional scalping and day trading. It helps traders identify periods of high volatility and momentum, filtering out false signals during low-momentum market conditions. The indicator uses ATRs, ADX, and linear regression to measure market trends. It's recommended to use this tool alongside other indicators, like the Commodity Channel Index (CCI), for confirming trading signals. The video also emphasizes the importance of proper risk management strategies, such as the 1% rule, to ensure successful trading outcomes.

Takeaways

• 📊 This video introduces a special indicator on TradingView designed for professional scalpers.
• 🔍 To add the indicator, search for 'scalpers volatility filter' by Quantra System in the indicators section.
• ⏳ The indicator is suitable for trading on lower time frames, ideal for scalping and day trading strategies.
• 📉 It helps identify periods of high and stable volatility and momentum, filtering out noise in the market.
• 🔄 The indicator uses a combination of two ATRs, a modified ADX, and linear regression to measure market conditions.
• ⚠️ When the indicator is below the center line and gray, it signals low volatility and momentum, indicating a non-trending market.
• 📈 The indicator changes to blue or purple above the center line, showing increased volatility and momentum without indicating direction.
• 📉 Blue signs suggest increasing momentum and volatility, while purple signs indicate weakening momentum and volatility.
• 🔄 The indicator is best used in conjunction with other indicators or trading strategies, not on its own.
• 📉 An example strategy is combining the indicator with the CCI set to a length of 200 to confirm signals for trend-following strategies.

Q & A

What is the special indicator introduced in the video for professional scalpers?

The special indicator introduced is the 'scalpers volatility filter', designed to help professional scalpers identify optimal periods in the market with high and stable volatility and momentum.

Who is the author of the 'scalpers volatility filter' indicator?

The indicator is written by 'quantra System'.

Why is the 'scalpers volatility filter' suitable for trading on lower time frames?

It is suitable for lower time frames because it helps to filter out noise and identify high volatility and momentum periods, which are crucial for scalping and day trading strategies.

How does the 'scalpers volatility filter' indicator combine volatility and momentum?

The indicator combines a modified and smoothed version of the ADX and linear regression to simultaneously measure volatility and momentum in the market.

What does the color of the indicator signs signify when the indicator is below the center line?

When the indicator signs are in gray color and below the center line, it signifies low volatility and low momentum in the market, indicating a trading range or flat market condition.

How should traders interpret the indicator when it shows signs above the center line?

When the indicator is above the center line and changes from gray to blue or purple, it indicates increased momentum and volatility in the market, but it does not provide information about the direction of the trend.

What is the significance of the blue and purple signs in the 'scalpers volatility filter' indicator?

Blue signs indicate increasing momentum and volatility, while purple signs suggest a weakening of momentum and volatility, reflecting the strength or weakness of the market movement in a shorter term perspective.

Why should the 'scalpers volatility filter' not be used alone in trading?

It should not be used alone because it is a complementary tool that helps filter false signals or confirm signals from other trading strategies, and it does not provide complete information about market direction or conditions on its own.

What is an example of another indicator that can be used in conjunction with the 'scalpers volatility filter'?

The Commodity Channel Index (CCI) with a length setting of 200 can be used to help identify longer-term trends and confirm signals from the 'scalpers volatility filter'.

What is the recommended risk management strategy mentioned in the video for scalping and day trading?

The recommended risk management strategy is the 1% rule, which calculates position size based on the stop-loss level to ensure that a maximum of 1% of the trading account is lost if the market moves against the trader.

What should a trader do if they encounter a confirmed signal from both the 'scalpers volatility filter' and another indicator like CCI?

A trader should enter a position when both indicators confirm a signal, setting a stop loss below the previous swing low and aiming for a 1.5 risk-to-reward ratio.