Ultimate Sclaping Indicator

Overview

The Confluence Signal Indicator is a precision-built scalping tool designed to identify high-probability reversal points in the market.
It combines three core technical elements:

• Trend
  
• Mean reversion
  
• Momentum
  

into a single, efficient system.
By filtering out weak RSI signals and focusing only on setups that align with trend direction and recent momentum shifts, this indicator delivers cleaner and more accurate short-term trade signals.

Core Components

200-Period Moving Average (MA200, 5-Minute Timeframe)
The MA200 is always calculated from the 5-minute chart, regardless of your current timeframe. It defines the macro trend direction and ensures that all trades align with the prevailing momentum.

Session VWAP (Volume-Weighted Average Price)
The VWAP tracks the real-time average price weighted by volume for the current trading session. It acts as a dynamic mean-reversion level and helps identify key areas of institutional activity and short-term balance.

RSI (Relative Strength Index)
The indicator uses a standard 14-period RSI to detect overbought and oversold market conditions.
A “recency filter” is added to ensure signals only appear when RSI has recently transitioned from strength to weakness or vice versa, reducing false signals in trending markets.

Signal Logic

Bullish Signal (Green Arrow)
A bullish reversal signal is plotted below a candle when:

• Price is above both the 5-minute MA200 and the Session VWAP.
  
• RSI is oversold (below 30).
  
• The last time RSI was above 50 occurred within the last 10 candles before going oversold.
  

This ensures that the dip is a fresh pullback within an uptrend, not a prolonged oversold condition.

Bearish Signal (Red Arrow)
A bearish reversal signal is plotted above a candle when:

• Price is below both the 5-minute MA200 and the Session VWAP.
  
• RSI is overbought (above 70).
  
• The last time RSI was below 50 occurred within the last 10 candles before going overbought.
  

This ensures that the overbought reading follows a recent move from weakness, identifying potential short entries in a downtrend.

Recommended Usage
This is a scalping-focused indicator, intended for use on timeframes of 5 minutes or lower. Therefore I would highly recommend to use it on Equity futures trading, such as NQ!, ES!, GC! and so on.
It performs best when combined with additional tools such as support and resistance zones, order blocks, or liquidity levels for context.
Avoid counter-trend signals unless confirmed by price structure or volume behavior.