Power Scalper
📘 Summary
Indicators | RSI (14)
SSL
TDFI |
Suggested Chart Timeframes | 15M, 1H |
Long Entry | - RSI exceeds 70
- Closing price is above the upper SSL level
- Force Index is above 0.05 |
Short Entry | - RSI falls below 30
- Closing price is below the lower SSL level
- Force Index is below -0.05 |
Suggested Exit Signal | - Fixed Stop-Loss/Take-Profit levels (e.g., 1% and 3%). |
📚 Details
The strategy is a rather complex approach which specifically focuses on scalping. It uses some lesser known indicators (SSL, TDFI). Moreover it uses the RSI in a uncommon way, specifically tailored to the scalping approach.
Since it is a scalping strategy, it requires a very close monitoring of the price to make advantage of short-term price movements.
Required Indicators
To use this strategy, you will need three key indicators :
- Relative Strength Index (RSI): A momentum oscillator that measures the speed and change of price movements, identifying overbought (>70) or oversold (<30) conditions.
- Semaphore Signal Level Channel (SSL): This indicator determines the trend direction by comparing the current price to the highs and lows of the past ten periods, producing two key values: “SSL Up” and “SSL Down”.
- Trend Direction Force Index: By combining price movement, volume, and time, this index reveals the strength behind price trends, aiding in the identification of potential market reversals.
Chart Timeframes
This strategy is specifically designed for scalping. Accordingly, it works best on lower timeframes, such as the 15-minute chart.
Entry Signals
Let’s have a look at the entry signals. The strategy provides a clearly defined entry signal for both long and short trades. However, it is important to make sure that all criteria are met before opening a trade!
Long Entry Signal
Here’s what has happened: It is very important to understand the core idea of this strategy. Designed for scalping approaches, the strategy tries to realize the last percentages of a pump. The SSL and TDFI are used to identify a super strong uptrend. Once the RSI enters overbought territory the strategy assumes, that the price will rise for another few percentages before it bounces — and want to make profit out of it.
Short Entry Signal
Obviously, the short entry is the opposite in terms of indicators.
Exit Signal
We strongly recommend to use fixed take profit and stop levels for this strategy. However, keep in mind, that this is a scalping strategy. Accordingly, and depending on your asset, it can make sense to set profit and stop loss level quite narrow.
Backtest Results
Backtests have shown that the results highly depend on the defined take profit and stop loss levels. However, based on the right setting, success rates of 70%-80% have been achieved.
How To Apply The Strategy?
All indicators required for this strategy are available on TradingView, making it accessible for traders at all levels.
For those looking for a more direct approach, Crypto OS offers this strategy as a pre-defined signal for more than 200 crypto tokens, simplifying the process even further.