OPEN-SOURCE SCRIPT
NIFTY 5-STAR Buy/Sell Indicator | Entry, SL & Targets
This indicator is designed to identify high-probability intraday trading opportunities by combining trend confirmation, volume strength, and strict filtering rules.
It generates Strong BUY and Strong SELL signals only when multiple market conditions align.
The goal is to help traders take disciplined trades with predefined risk and target levels.
Core Strategy Logic
A signal is generated only when price aligns with four key trend indicators simultaneously.
The system checks:
EMA 21 – Short-term trend direction
VWAP – Institutional average traded price
VWMA 20 – Volume-weighted momentum confirmation
Supertrend – Trend direction and dynamic stop loss level
A signal appears only when price is positioned on the same side of all these indicators.
Buy Signal Conditions
A Strong BUY signal is generated when:
Price is above EMA 21
Price is above VWAP
Price is above VWMA 20
Price is above Supertrend
3-minute volume is greater than the minimum volume threshold
This indicates strong bullish momentum supported by market participation.
Sell Signal Conditions
A Strong SELL signal appears when:
Price is below EMA 21
Price is below VWAP
Price is below VWMA 20
Price is below Supertrend
3-minute volume is above the minimum threshold
This confirms strong bearish momentum.
Time-Based Trade Filter
Signals are allowed only during active market hours:
9:31 AM – 3:00 PM
This avoids:
opening volatility
illiquid late-session trades
One Signal Per Day Rule
The system generates only one signal per day.
Once a BUY or SELL signal appears, the indicator will not generate another signal on the same trading day.
This helps prevent overtrading and noise.
Stop Loss Logic
The Supertrend line acts as the Stop Loss.
On the chart:
Yellow Line = Stop Loss
This makes the stop loss dynamic and trend-based.
Target Logic
Targets are calculated based on the distance between entry price and stop loss.
Target formula:
Target = Entry ± Risk
Where:
Risk = | Entry − Supertrend |
On the chart:
Orange Line = Target
Risk-Reward Ratio
The strategy currently targets:
Risk : Reward = 1 : 1
Example:
Entry = 24,600
Stop Loss = 24,560
Risk = 40 points
Target = 24,640
Reward = 40 points
Best Use Case
This indicator works best for:
Intraday index trading
Momentum continuation setups
NIFTY / BANKNIFTY futures
3-minute to 15-minute charts
Trading Philosophy
The idea behind this system is simple:
Trade only when trend, momentum, and volume align.
Instead of chasing random moves, the indicator waits for strong conditions and provides:
Entry signal
Stop loss level
Target level
This creates a complete structured trade plan on the chart.
It generates Strong BUY and Strong SELL signals only when multiple market conditions align.
The goal is to help traders take disciplined trades with predefined risk and target levels.
Core Strategy Logic
A signal is generated only when price aligns with four key trend indicators simultaneously.
The system checks:
EMA 21 – Short-term trend direction
VWAP – Institutional average traded price
VWMA 20 – Volume-weighted momentum confirmation
Supertrend – Trend direction and dynamic stop loss level
A signal appears only when price is positioned on the same side of all these indicators.
Buy Signal Conditions
A Strong BUY signal is generated when:
Price is above EMA 21
Price is above VWAP
Price is above VWMA 20
Price is above Supertrend
3-minute volume is greater than the minimum volume threshold
This indicates strong bullish momentum supported by market participation.
Sell Signal Conditions
A Strong SELL signal appears when:
Price is below EMA 21
Price is below VWAP
Price is below VWMA 20
Price is below Supertrend
3-minute volume is above the minimum threshold
This confirms strong bearish momentum.
Time-Based Trade Filter
Signals are allowed only during active market hours:
9:31 AM – 3:00 PM
This avoids:
opening volatility
illiquid late-session trades
One Signal Per Day Rule
The system generates only one signal per day.
Once a BUY or SELL signal appears, the indicator will not generate another signal on the same trading day.
This helps prevent overtrading and noise.
Stop Loss Logic
The Supertrend line acts as the Stop Loss.
On the chart:
Yellow Line = Stop Loss
This makes the stop loss dynamic and trend-based.
Target Logic
Targets are calculated based on the distance between entry price and stop loss.
Target formula:
Target = Entry ± Risk
Where:
Risk = | Entry − Supertrend |
On the chart:
Orange Line = Target
Risk-Reward Ratio
The strategy currently targets:
Risk : Reward = 1 : 1
Example:
Entry = 24,600
Stop Loss = 24,560
Risk = 40 points
Target = 24,640
Reward = 40 points
Best Use Case
This indicator works best for:
Intraday index trading
Momentum continuation setups
NIFTY / BANKNIFTY futures
3-minute to 15-minute charts
Trading Philosophy
The idea behind this system is simple:
Trade only when trend, momentum, and volume align.
Instead of chasing random moves, the indicator waits for strong conditions and provides:
Entry signal
Stop loss level
Target level
This creates a complete structured trade plan on the chart.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.