Trading General Strategy

Scalping Strategy

// This Pine Script™ code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © By Lucas Alberto
// Apply this script to short time frames (e.g., 1-minute or 5-minute charts) 
// The Buy label will appears when a bullish crossover (fast MA 1 crossing above fast MA 2) accompanied by high volume.
// The Sell label will appears when a bearish crossover (fast MA 1 crossing below fast MA 2) accompanied by high volume.
// Allso the take profit and stop loss lines will appears respectively.

//@version=6
indicator("Sell Tag Label Bubble Strategy", overlay=true)

// Input parameters for fast moving averages
fastMaLength1 = input.int(3, title="EMA Length 1", minval=1)
fastMaLength2 = input.int(7, title="EMA Length 2", minval=1)

// Input for RSI filter (optional)
useRsiFilter = input.bool(true, title="Use RSI Filter")
rsiLength = input.int(14, title="RSI Length", minval=1)
rsiOverbought = input.int(70, title="RSI Overbought Level", minval=50)
rsiOversold = input.int(30, title="RSI Oversold Level", minval=0)

// Input for risk management
useStopLoss = input.bool(true, title="Use Stop-Loss")
stopLossPerc = input.float(1.0, title="Stop-Loss (%)", minval=0.1)
useTakeProfit = input.bool(true, title="Use Take-Profit")
takeProfitPerc = input.float(2.0, title="Take-Profit (%)", minval=0.1)

// Calculate fast exponential moving averages
fastMa1 = ta.ema(close, fastMaLength1)
fastMa2 = ta.ema(close, fastMaLength2)

// Calculate RSI
rsi = ta.rsi(close, rsiLength)

// Detect short-term trend changes
isBullishCross = ta.crossover(fastMa1, fastMa2)
isBearishCross = ta.crossunder(fastMa1, fastMa2)

// Volume analysis (optional)
useVolumeFilter = input.bool(true, title="Use Volume Filter")
volumeMaLength = input.int(20, title="Volume MA Length")
volumeMa = ta.sma(volume, volumeMaLength)
isHighVolume = volume > volumeMa

// Price action patterns
isBullishEngulfing = (close > open) and (close[1] < open[1]) and (close > open[1]) and (open < close[1])
isDoubleBottom = (low[1] < low[2]) and (low < low[1]) and (close > open)

// Conditions for "Buy" label
isBuy = isBullishCross and (not useVolumeFilter or isHighVolume) and (not useRsiFilter or rsi < rsiOverbought) and (isBullishEngulfing or isDoubleBottom)

// Risk management: Stop-Loss and Take-Profit
var float entryPrice = na
var bool isActiveTrade = false
var float stopLossLevel = na
var float takeProfitLevel = na

if isBuy and not isActiveTrade
    entryPrice := close
    stopLossLevel := entryPrice * (1 - stopLossPerc / 100)
    takeProfitLevel := entryPrice * (1 + takeProfitPerc / 100)
    isActiveTrade := true

// Check if price hits stop-loss or take-profit
if isActiveTrade
    if useStopLoss and close <= stopLossLevel
        isActiveTrade := false
        entryPrice := na
        stopLossLevel := na
        takeProfitLevel := na
    if useTakeProfit and close >= takeProfitLevel
        isActiveTrade := false
        entryPrice := na
        stopLossLevel := na
        takeProfitLevel := na

// Final sell signal (only when stop-loss or take-profit is hit)
finalSellSignal = isActiveTrade and (close <= stopLossLevel or close >= takeProfitLevel)

// Plot Buy and Sell signals with label bubbles
plotshape(series=isBuy, location=location.belowbar, color=color.new(color.green, 50), style=shape.labelup, text="BUY", textcolor=color.white, size=size.small)
plotshape(series=finalSellSignal, location=location.abovebar, color=color.new(color.red, 50), style=shape.labeldown, text="SELL", textcolor=color.white, size=size.small)

// Optional: Plot stop-loss and take-profit levels
plot(stopLossLevel, color=color.red, title="Stop-Loss Level", linewidth=1, style=plot.style_linebr)
plot(takeProfitLevel, color=color.green, title="Take-Profit Level", linewidth=1, style=plot.style_linebr)

// Optional: Plot fast exponential moving averages for visualization
plot(fastMa1, color=color.new(color.blue, 0), title="EMA 1", linewidth=1)
plot(fastMa2, color=color.new(color.orange, 0), title="EMA 2", linewidth=1)

// Optional: Plot RSI for reference
hline(rsiOverbought, "Overbought", color=color.red, linestyle=hline.style_dotted)
hline(rsiOversold, "Oversold", color=color.green, linestyle=hline.style_dotted)
plot(rsi, title="RSI", color=color.purple, linewidth=1)