The options scalper is a momentum-based indicator that measures the rate of price changes, not their direction. It identifies the strength of price movements, making it a versatile tool for trading various instruments such as stocks, commodities, currencies, and derivatives.
Options scalping involves profiting from small, rapid price changes by trading over very short time frames. Success hinges on timely exits and advanced tools for predicting and reacting to these swift price shifts.
How the Options Scalper Works
To execute a scalping strategy, start by identifying the right price point using the options scalper. This indicator marks the closing price with a horizontal line when a signal is generated. The line moves right with each new candle and is color-coded:
- blue for buy signals and
- dark golden for sell signals.
Stop-Loss Placement and Adjustment
In options scalping, the scalper indicator marks an additional line at the opening prices of signal candles, helping you set a stop-loss limit.
This secondary line adjusts with price movement: for a buy trade, it becomes a trailing stop-loss if the price moves above the upper variance line (light green), and for a sell trade, if it moves below the lower variance line (purple). This ensures losses are capped and adapts to favorable price changes.
The scalper tool, available on TradingView, is now accessible on the Samco trading app for Samco Securities account holders, helping refine scalping strategies and improve trade outcomes.
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