By Janus Trader

Introduction:

Scalping the market during high-volume sessions like New York and London can be incredibly rewarding—if you have the right strategy in place. Today, we're diving deep into a powerful 5-minute scalping strategy built around Chandelier Exit and Damiani Volameter. With the help of the DIY Strategy Builder on TradingView, you can create, customize, and automate this strategy to fit your trading needs perfectly. Let’s see how you can start scalping the major market sessions with precision.

Why Chandelier Exit + Damiani Volameter?

This combination of indicators works exceptionally well for fast-paced scalping due to its ability to filter out noise and focus on true market movements. Here’s why it works:

• Chandelier Exit: This volatility-based indicator helps you identify potential entry and exit points by focusing on price swings. It’s highly responsive, making it perfect for quick trades on a 5-minute chart.

• Damiani Volameter: Acts as a confirmation filter, preventing you from trading in choppy, low-volatility conditions. It’s great for ensuring that you only take trades when the market is moving with enough momentum.

When combined, these two indicators create a robust scalping strategy that maximizes profit opportunities while minimizing false signals.

Setting Up the DIY Strategy Builder for This Strategy:

With the DIY Strategy Builder, you can automate this setup by selecting Chandelier Exit as your leading indicator and Damiani Volameter as the confirmation. Here’s how you can do it:

Step-by-Step Strategy Setup:

1. Leading Indicator: Chandelier Exit

• Settings:

  • Sensitivity: 2

  • ATR Period: 1

The Chandelier Exit will act as your primary signal generator, producing buy and sell signals based on price volatility and the chosen ATR period.

2. Confirmation Indicator: Damiani Volameter

• Settings:

  • ATR: Change from default 40 to 34

  • Check the "Lag Suppressor" to avoid false signals in low-volume environments.

The Damiani Volameter filters out trades in low-volatility zones, ensuring that signals are only triggered in optimal trading conditions.

3. External Indicator: Zero Lag TEMA

• Settings: 44 periods. ( To learn how Zero Lag Tema is configured, watch the video attached to this post.)

This adds an additional layer of validation, reducing lag and enhancing the speed of your trade signals. You can integrate it as an overlay to further refine your entries and exits.

How This Strategy Works in Practice:

During High-Volume Sessions (NY & London):

• The Chandelier Exit will trigger potential entry or exit signals based on price action. For example, when a sharp move occurs, the indicator will produce a buy or sell signal, which appears directly on your chart.

• The Damiani Volameter then confirms the signal, ensuring that you’re not entering a trade during low-volume or choppy conditions. This helps to filter out bad trades and focus on high-probability setups.

• The Zero Lag TEMA provides an extra layer of speed and accuracy, minimizing the lag that often occurs with traditional moving averages. This way, you can act on signals faster and more efficiently.

Together, these three elements create a strategy tailored for quick decision-making during the most liquid market hours—making it perfect for scalping on a 5-minute chart.

Heikin Ashi Candle.

Buy Rules:

1. Chandelier Exit generates a buy signal when the price breaks above a significant support level and the volatility indicates an upward move.

2. Damiani Volameter confirms the buy signal by showing that the market is in a high-volatility state, meaning it's safe to enter.

3. Zero Lag TEMA aligns with the buy signal, providing extra confirmation that price momentum is building.

Sell Rules:

1. Chandelier Exit generates a sell signal when the price falls below a key resistance level, indicating a potential downward movement.

2. Damiani Volameter confirms this sell signal, ensuring that volatility is high enough to support a strong bearish move.

3. Zero Lag TEMA supports the sell signal, confirming that the downward trend is likely to continue.

Once these conditions are met, you enter the sell trade. Place your stop-loss just above the most recent resistance level.

Example Trade Scenario:

Let’s say you’re scalping the New York open. Here's how a typical trade might unfold using this strategy:

1. Chandelier Exit triggers a sell signal as price hits resistance and volatility spikes.

2. Damiani Volameter confirms the trade by showing that the market has enough momentum for a sustained move down.

3. Zero Lag TEMA aligns with the sell signal, giving you confidence that this is not a false move.

You enter the trade, set your stop-loss just above the recent high (using the Chandelier Exit’s calculated value), and ride the trade until the next reversal signal. The strategy aims to capture quick profits in just a few minutes, making it ideal for fast-paced scalpers.

Advice: The New York session is the best session, my advice is to use only the New York session in this case the strategy is extremely reliable with a and will generate a high profit factor.
Only with experience can you also use the London session.

Conclusion:

Using the Chandelier Exit + Damiani Volameter strategy during high-volume sessions like New York and London is a fantastic way to scalp the market with confidence. By automating this setup with the DIY Strategy Builder on TradingView, you can focus on executing the best trades without the hassle of manual confirmation.

Say goodbye to cluttered charts and inefficient strategies—start scalping with precision and efficiency today!

Conclusion:

Using the Chandelier Exit + Damiani Volameter strategy during high-volume sessions like New York and London is a fantastic way to scalp the market with confidence. By automating this setup with the DIY Strategy Builder on TradingView, you can focus on executing the best trades without the hassle of manual confirmation.

Say goodbye to cluttered charts and inefficient strategies—start scalping with precision and efficiency today!