Logic Day

1.    What is Logic Day Trading?

The Logic Day Trading Indicator is a tool designed for scalping and day trading on intraday charts, particularly effective on the 30-minute and 1-hour time frames.

It is based on Donchian breakouts and price patterns and uniquely uses only price action to identify trade setups, without relying on any lagging indicators for pattern detection. This approach allows the indicator to respond quickly to market changes, aiding traders in entering profitable trades as early as possible and maximizing profits from intraday price movements​​.

This indicator is particularly adept at scalping on the 30-minute time frame, where it can effectively detect trade opportunities. For instance, using a straightforward strategy of buying on upward price move signals and selling on downward ones, the indicator can facilitate multiple winning trades.

The indicator also works extremely well for Day-Trading on 1-Hour time frame. Here is an example on the AUDUSD hourly chart:

The Logic Day Trading Indicator is proficient in detecting true breakouts with accuracy and is described as an excellent tool for catching market tops and bottoms. For instance, here is the GBPUSD hourly chart:

The integration of "underlying trend" filters into the indicator's algorithm further enhances its effectiveness by ensuring it detects setups that align with the underlying market trend and filters out false signals. For example the GBPJPY 2h chart below:

2. Indicator settings:

Min Range: This setting determines the minimum value an indicator reading must reach to be considered valid. It helps filter out less significant signals.

Max Range: The maximum threshold the indicator can reach. This setting helps identify extremely overbought or oversold conditions.

High Low Filter: This filter screens for the highest and lowest values over a specified period, helping to identify potential extremes or breakpoints in price movements.

Max Back Bars: This setting controls how many previous bars (or time periods) the indicator considers when calculating its values, impacting its sensitivity to past market data.

Enable Trend Filter: When activated, this setting allows the indicator to incorporate a trend-based component, possibly adjusting signals based on the prevailing market trend.

Use Daily Timeframe: This adjusts the indicator to base its calculations on daily chart data, which is useful for longer-term trend analysis.

Fast Period: Usually refers to the shorter time frame or period in a moving average or similar calculation, allowing for quicker responsiveness to market changes.

Slow Period: Refers to the longer time frame or period, which smooths out market noise and provides a clearer picture of longer-term trends.

Bull/bear zone, analysis, buy/sell text colors: customize the preferred colors for those items. 

Buy/Sell arrow size: choosing your preferred size of the arrows.

3. Alert set-up:

To stay updated on potential trading opportunities, you can set up alerts within the Logic Day Trading indicator.

Step 1: From the indicator settings, customize your alerts by defining your desired parameters for buy and sell signals. The selected configurations will be used for notifications in Step 2.

Step 2: To receive notifications through the app, pop-ups, alert emails, Webhook URL, sound alerts, or email-to-SMS, enable these features by clicking on TradingView's Alert icon.

Step 3: Select Logic Day Trading from the “Condition” dropdown list.

Step 4: A pop-up will appear as follows. Click on “Notification”.

Step 5: Choose the types of notifications you'd like to receive, and click the “Create” button.