This Scalper Ribbon is a combination of 6 different oscillators with a sprinkle of secret sauce . It’s smoothed out so it’s easy to read, but is quick enough to catch reversals early and helps you spot divergences. It will turn green or red according to the bullish or bearish nature of the ticker you are viewing without all of the noise that most oscillators give you.
It combines price action, momentum, rsi and a few other oscillators together to give an overall trend strength line that is smoothed out and coupled with a moving average to make it less noisy. Use it as an identifier of the underlying trend so you can make better decisions on scalp trades as well as swing trades on longer timeframes. Wait for the ribbon to break out/down from the middle blue range to avoid chop and get in when price is actually moving.
***HOW TO USE*** Find tops and bottoms of the market by looking for reversals in the ribbon when it is either very high or very low. The white line is the midline and the ribbon is overall bullish when above the midline and overall bearish when below the midline. There are also two blue lines just above and below the midline that is a buffer area I like to call the neutral range. When the ribbon is in the neutral range, expect indecision in the market and look for the ribbon to break out or down from that range for continuation of a trend. The farther away from the neutral range the ribbon is, the stronger the trend is. Take a look at how it performs across multiple timeframes and tickers and get a feel for it before using it in your strategy. It will help you spot reversals early and show you hidden divergences in price action before the reversals happen.
***CUSTOMIZATION*** You can adjust the length of the oscillators and the moving average ribbon to be faster or slower to suit your preferences. The lower the number used, the faster it will detect changes, but the more noise it will have. The higher the number used, the slower it will detect changes, but there will be less noise and easier to follow.
***MARKETS*** This indicator can be used as a signal on all markets, including stocks, crypto, futures and forex.
***TIMEFRAMES*** This Scalper Ribbon indicator can be used on all timeframes.
Thanks. Looks good. Will experiment. What levels are most reliable in general to spot possible divergences? 80, 100 (sell); -40. -80 buy ?
FriendOfTheTrend
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@osunwoke2, So, it uses momentum as one of the underlying oscillators which will make it swing outside of the normal 0-100 range. Because of that, specific levels aren't practical. Instead, watch how it reacts to the middle "neutral zone". When it's bullish, it will oscillate above the neutral zone with bounces inside it and the opposite for bearish. For divergence, you'll notice it turning opposite of the price action a little early from the top/bottom of the oscillator range, so take positions when this is happening at a logical support/resistance level. I prefer to use it for bounces off the neutral zone during trends though because trading against the trend is much more dangerous than trading with the trend.
Kao_5MIN
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Looks very nice thanks for share ! Best setup for 15min Btc?
FriendOfTheTrend
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@Kao_5MIN, The default settings are fine, but you can play with the lengths in the settings to make it react faster. You'll just get a little more noise with faster settings.