From LIHKG
Pine from Perplexity AI
Backside Bubble Scalping Indicator
Overview
The Backside Bubble Scalping indicator is designed for traders looking to capitalize on short-term price movements in the stock market, particularly during the trading hours of 9:30 PM to 12:00 AM Hong Kong time. This strategy focuses on identifying two distinct setups: Sharp Backside and Blunt Backside, which typically occur between 10:00 PM and 12:00 AM.
Key Features
VWAP (Volume Weighted Average Price): Represented in pink, this line helps identify the average price at which the security has traded throughout the day, factoring in volume.
9 EMA (Exponential Moving Average): Shown in green, this line captures short-term price trends and helps identify potential reversals.
Setup Conditions
1. Sharp Backside
Market Condition: A pure downtrend where the price is below the VWAP.
Entry Criteria:
The current price is below VWAP.
The previous candle's close is lower than the current candle's close.
The current price is above the 9 EMA.
Signal: When these conditions are met, a "Sharp Buy" signal will be displayed.
2. Blunt Backside
Market Condition: A mixed trend characterized by consolidation with a dull V-shape.
Entry Criteria:
The current price is below VWAP.
The previous candle's close is higher than the current candle's close.
The current price must be above the previous candle's 9 EMA.
Signal: When these conditions are met, a "Blunt Buy" signal will be displayed.
Exit Conditions
Sell Signal: A sell signal will be generated when:
The price falls below the VWAP or below the 9 EMA.
Risk Management
Stop Loss: Set at a predefined buffer below the entry price to manage risk effectively.
Take Profit: Calculated based on a specified ratio relative to the stop loss distance.
Usage Instructions
Add the indicator to your TradingView chart.
Monitor for Sharp and Blunt Buy signals during the specified trading hours.
Use the VWAP and 9 EMA lines to assess market conditions before entering trades.
Set your stop loss and take profit according to your risk management strategy.
Conclusion
The Backside Bubble Scalping indicator provides traders with a structured approach to identifying potential entry points in a volatile market. By focusing on specific setups and utilizing key technical indicators, traders can enhance their decision-making process and improve their trading outcomes. Feel free to modify any part of this description to better fit your style or specific requirements!