Scalp Signal with SL TP

Scalp Signal with SL TP Indicator — Trading Guide

What It Does

Scalp Signal with SL TP detects high-probability reversal entries by combining RSI extremes with candlestick patterns. It prints buy/sell arrows on chart with auto-calculated SL and 3 TP levels based on ATR.

Built for scalping and intraday trading on MT5.

Signal Types

The indicator generates 3 types of signals. Each requires RSI to be at an extreme level before triggering.

1. Engulfing (Default: ON) The primary and strongest signal. A bullish engulfing candle forms while RSI is at or just left oversold territory — or a bearish engulfing while RSI is at/just left overbought. This captures momentum shifts confirmed by price action.

• Buy: Current close > previous open + previous candle was bearish + RSI ≤ 15 (current or prior bar)
• Sell: Current close < previous open + previous candle was bullish + RSI ≥ 85 (current or prior bar)

2. Hammer / Shooting Star (Default: OFF) Detects single-bar reversal patterns using a Fibonacci body ratio. A hammer with a tiny body near the high during oversold RSI suggests buyers stepped in. A shooting star with body near the low during overbought RSI suggests rejection.

• Buy: Hammer pattern + RSI ≤ 15
• Sell: Shooting star + RSI ≥ 85

3. Two Bull/Bear Bars (Default: OFF) Two consecutive bullish candles while RSI is oversold, or two consecutive bearish candles while RSI is overbought. This confirms sustained directional pressure at extremes.

• Buy: 2 green bars + RSI ≤ 15
• Sell: 2 red bars + RSI ≥ 85

You can enable multiple signal types simultaneously. Engulfing alone works well for most traders.

SL & TP Logic (ATR-Based)

Every signal automatically draws SL and 3 TP levels using ATR (default period: 14). This adapts to current volatility — wider stops in volatile markets, tighter in calm ones.

Example: If ATR = 20 pips on EUR/USD M15, a buy signal at 1.08500 gives:

• SL: 1.08200 (30 pips)
• TP1: 1.08700 (20 pips)
• TP2: 1.08900 (40 pips)
• TP3: 1.09100 (60 pips)

All multipliers are adjustable in settings.

Recommended Settings by Style

Aggressive Scalping (M1–M5)

• RSI Length: 5–7
• RSI Levels: 80/20
• ATR Period: 10
• SL: ATR × 1.0
• TP1/TP2/TP3: 0.8 / 1.5 / 2.0
• Signals: Engulfing ON, others optional

Standard Scalping (M15–M30)

• RSI Length: 7 (default)
• RSI Levels: 85/15 (default)
• ATR Period: 14
• SL/TP: Default multipliers
• Signals: Engulfing ON

Intraday Swing (H1–H4)

• RSI Length: 9–14
• RSI Levels: 80/20
• ATR Period: 14–20
• SL: ATR × 2.0
• TP1/TP2/TP3: 1.5 / 3.0 / 4.5
• Signals: All three ON

How to Trade — Step by Step

Entry

1. Wait for an arrow to appear on a closed bar. Do not act on the current forming bar.
2. Check the signal label for entry price.
3. Enter at market or set a limit order near the signal price.

Position Management

1. Set SL at the drawn SL line immediately.
2. At TP1 — close 30-50% of position, move SL to breakeven.
3. At TP2 — close another 30-40%, trail SL behind recent swing.
4. At TP3 — close remaining position or continue trailing.

Filters (Recommended)

• Trade in the direction of the higher timeframe trend. If H4 is bearish, prioritize sell signals on M15.
• Avoid signals during major news releases (NFP, FOMC, CPI).
• Skip signals with unusually small candles — they often lack conviction.
• Best pairs: major forex pairs, gold, and indices with good liquidity.

Key Settings Reference

Tips

• RSI 85/15 is strict by design. It filters out most noise but means fewer signals. If your pair rarely hits these levels on your timeframe, loosen to 80/20.
• The "Max Calc Bars" setting (default 500) limits how far back the indicator calculates. Set to 0 for full history, but 500 is enough for live trading and keeps the chart fast.
• ATR-based SL/TP automatically adjusts to session volatility. London and New York sessions will produce wider levels than Asian session — this is correct behavior.
• Combine with support/resistance or supply/demand zones for higher conviction entries.
• Always use proper risk management: 1-2% of account per trade maximum.

Scalp Signal with SL TP is a signal indicator, not an automated trading system. All trading decisions and risk management are the trader's responsibility. Past signals do not guarantee future results.