Scalping Board Indicator

Study Guide for aiTrendview.com Scalping Board Indicator
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1. Script Name (Ticker Symbol)
The name or ticker symbol of the traded instrument is displayed here. This helps the trader quickly identify which asset the data relates to, especially when multiple charts or windows are open. Always confirm that you are analysing the correct security to avoid confusion or misapplication of your strategy.

2. Trend
Trend is a key directional indicator of market momentum. In this script, the trend is primarily determined through RSI (Relative Strength Index) levels and their movement. For example:
• Uptrend: RSI is low (oversold) but rising, signalling bullish momentum.
• Downtrend: RSI is high (overbought) but declining, signalling bearish momentum.
• Neutral: RSI is mid-range or trend is unclear.
Recognizing trend direction helps traders:
• Align trades with overall market momentum, increasing win probability.
• Avoid counter-trend trades which are more risky and unpredictable.
• Filter signals to take only those in the direction of dominant movement.

3. Status
Status provides a snapshot of current market sentiment or action recommendations inferred from RSI and trend dynamics. Notable statuses include:
• Strong Buy: RSI oversold with upward momentum, indicating potential buying opportunity.
• Strong Sell: RSI overbought with downward momentum, indicating potential selling pressure.
• Accumulation / Distribution: Price consolidation phases where smart money might be accumulating or distributing positions before a larger move.
• Hold Long / Hold Short: Waiting phases where traders are advised to maintain positions or exercise caution.
Status signals help traders decide when to enter, hold, or exit trades, and when the market is in a transition or indecision phase.

4. Open Interest (Simulated)
Open interest usually shows the number of open contracts in futures/options markets, but this script simulates it as volume adjusted for recent price movement on a 30-minute timeframe. A rising open interest suggests more participation and liquidity.
Traders use open interest to:
• Confirm trend strength (high open interest in an uptrend supports bullish continuation).
• Detect potential reversals when price moves on declining open interest.
• Gauge market participation to avoid thin/liquidity-starved conditions.
High and increasing open interest paired with volume and price action validates strong move conviction.

5. Risk to Reward (R:R) Ratio
This ratio compares the potential profit of a trade relative to its potential loss. Calculated here using RSI-based recent price levels, it is a critical metric to assess trade quality before entry.
• Higher R:R (e.g., > 2:1): Favorable reward versus risk, attractive trade setup.
• Lower R:R (<1): Risk likely outweighs reward; need cautious entry or avoidance.
Traders should seek trades with a good R:R ratio to maximize profitability over many trades and manage downside risk effectively.

6. Buy Volume Percentage
This metric shows the percentage of total volume that occurred in bullish bars (where close > open), weighted to reflect buying pressure.
• High buy volume % can indicate aggressive buying and potential price strength.
• Sudden surges in buy volume provide clues to momentum shifts.
Traders use this to:
• Confirm bullish entries.
• Validate strength behind price rallies.
• Signal potential breakouts or reversals fueled by buying demand.
Volume patterns are among the most powerful trade confirmation tools.

7. Sell Volume Percentage
Opposite of buy volume percentage, this shows the weighted percentage of volume on bearish or selling bars (close < open).
Observing high sell volume % implies:
• Strong selling pressure and weak price action.
• Potential for breakdowns or trend reversals downwards.
Traders incorporate sell volume percent in conjunction with price and other indicators to fine-tune entries and exits, especially to avoid buying into weakness.

8. Volatility Percentage
Volatility is calculated as Average True Range (ATR) relative to price, expressed in percentage terms.
• High volatility indicates wide price fluctuations and risk but also opportunity.
• Low volatility suggests consolidation or range-bound market.
Traders use volatility to:
• Adjust position sizing—higher volatility means smaller positions to limit risk.
• Time entries or exits—breakouts are more reliable in higher volatility.
• Determine if current conditions suit their trade style (scalers thrive in volatility, trend followers prefer strong directional moves).

9. Winning Probability Percentage
This metric provides an estimated probability of trade success based on RSI level zones and current trend.
• RSI levels below 20 or above 80 often have higher win probability (~85%), reflecting oversold or overbought extremes.
• Moderate levels and alignment with trend improve odds.
• Neutral or conflicting conditions lower win probability to around 50%.
Understanding predicted winning probability helps traders:
• Prioritize high-probability setups.
• Manage expectations and mental preparedness.
• Decide whether to size up or down based on confidence.

How Traders Can Use the Table Effectively
This scalping board condenses multiple actionable metrics into a concise dashboard. Traders can:
• Quickly identify overall market bias by assessing trend and status.
• Gauge trade quality with risk-reward and winning probability before committing.
• Confirm momentum and volume support via buy/sell volume % and ODI proxy.
• Adjust risk management by watching volatility and adapting trade size.
• Make objective, data-driven decisions rather than acting on emotion or guesswork.

Combining these metrics forms a powerful toolkit for short-term, high-frequency scalping or day trading strategies.

Disclaimer from aiTrendview.com
“This indicator is provided for educational and informational purposes only. Trading financial markets involves significant risk, and past performance is not indicative of future results. Always perform your own analysis and use proper risk management techniques. aiTrendview.com is not responsible for any losses or damages incurred from the use of this tool. Use it at your own discretion and consult a financial advisor if needed.”