Scalpy

Scalpy is made up of a 2 main parts.

- The cloud comprising of a 10 period SMA and a 30 period SMA.

- When the cloud is green you should be looking for long entries.
- When the cloud is red you should be looking for short entries.
- Price is most bullish above a green cloud and most bearish below a red cloud.
- Being within the cloud indicates indecision.

The blue and white lines on the indicator show the relationship between price and momentum.
They can be used to spot reversals in two ways:

- The first is a divergence between price (blue line) and RSI (white line)
- If the price makes a lower low but the RSI makes a higher low this shows the trend is weakening and may be reversing soon (as can be seen by the two yellow lines on the chart).

The second is a simple crossover:
- When the white line crosses the blue line to the upside this signals a long entry.
- When the white line crosses the blue line to the downside this signals a short entry.