What is the Scalpers Channel Indicator?

[franklin76]

What is the Scalpers Channel Indicator?

It looks obviously like a channel that scalpers can use, but I'm not getting how the scalper's channel functions. This scalpers indicator is available on TOS and also TradingView.

Has anybody tried using this indicator, any success? how about an explanation of the calculation

[igg_investments]

Here's the entire study, short and sweet code. I was surprised at the simplicity here but the calculation of the channel still confuses me also.

Code Select Expand

declare weak_volume_dependency;
input length = 20;
input factor = 15;
plot scalper_line = Average(close, factor) - Log(Double.Pi * (Average(TrueRange(high,  close,  low),  factor)));
plot hi = Highest(high, length);
plot lo = Lowest(low, length);

This is an old indicator, the author describes it as providing an indication of where the current point of control is of three different cycle lengths of volume or price distribution along with real-time previous and current support and resistance that forms a channel.

The scalper lines can be thought of as the real time point of control, or POC.

[franklin76]

Thanks, I haven't processed the scalper calculation yet either, but I added another channel study over the top of the scalper channel to see how it compares and what I found is pretty interesting. It is the Donchian channel. When running both studies simultaneously you can see the the scalpers channel is slightly more responsive than the Donchian channel but eerily similar even though they are calculated differently.

These channel indicators can't be used by themselves is my main takeaway.

[earnie]

I've played with this indicator. It is interesting, still using it. If you think of the center scalper line as the realtime point of control, it gives you a realtime price magnet.

[earnie]

The scalpers channel is way more responsive as far as I can see than a Donchian channel indicator when you're looking to identify a bullish and bearish extreme.  Donchian reversals are slower to the table than the scalpers channel reversals.

On the Donchian indicator, the middle band simply computes the average between the highest high over X amount of periods and the lowest low over X amount of periods to identify the mean reversion price. Its just basic math and I don't get any benefit from the Donchian middle line

[adamalpha]

I added the scalpers channel for some testing. Let's see if this adds any value to my stockcharts

[heck_with_you]

I have hit and miss luck with the scalper's channel. There's not enough substance here just cleverly calculated deviation. It will work sometimes I think that half-hearted success is just luck.

[lloyd80]

Generally speaking, technical analysis involves analyzing charts and historical trading data to identify patterns and trends in the stock market. Some technical analysis tools and indicators are based on mathematical calculations and can help traders make trading decisions.

However, it is important to note that technical analysis alone cannot predict future stock price movements, and should be used in combination with other factors such as fundamental analysis and market trends.

The scalpers channel is only one tool, so don't rely too heavily on it...

[Kraig]

I've tried the Scalpers channel and had intermittent success. Not currently using it anymore

[PlaceboTrader]

Scalpers channel will work sometimes, just like every other indicator. It is a cool concept but it lags the real-time trading world