2-Minute Trend and Power Scanner

# 2-Minute Trend and Power Scanner: Functionality and Entry Signals

i.postimg.cc/JnY2CyXr/SMA20200.png

The TradingView script "2-Minute Trend and Power Scanner" is based on the concept of PowerBar signals on 2-minute charts with 20 and 200 period SMAs, as explained in the video on Youtube ("How To Master the 2-min Chart" from
Oliver Velez Trading).

Here is a detailed description of how it works:

## Basics of the Script

The script uses two essential moving averages:
- 20-period simple moving average (SMA)
- 200-period simple moving average (SMA)

These two SMAs form the basis for trend identification, exactly as described in the video. The 20 SMA is considered the "child," while the 200 SMA functions as the "parent."

## Market Phase Detection

The script identifies three essential market phases:
- **Narrow**: When the distance between the 20 and 200 SMA is small
- **Trending**: When the 20 SMA separates from the 200 SMA and forms a trend
- **Wide**: When the distance between the two SMAs is particularly large

This phase detection corresponds exactly to the concept of three states (flat/narrow, trending, and wide) described in the video.

## PowerBar Definition

A key element for signals are "PowerBars":
- **Bullish PowerBar**: A green candle bar with above-average size (factor definable via powerFactor) that forms near the 20 SMA
- **Bearish PowerBar**: A red candle bar with above-average size that forms near the 20 SMA

The proximity to the 20 SMA is defined by the parameter "nearPerc," which sets the maximum percentage distance.

## Trend Determination

The trend is defined as follows:
- **Bull Trend**: When price > SMA20 > SMA200, and both SMAs have the correct angle which you can set in the input field
- **Bear Trend**: When price SMA20 > SMA200)
- The 20 SMA has the right angle (default: 45-90 degrees)
- The 200 SMA has the right angle (default: 2-90 degrees)
- A bullish PowerBar occurs near the 20 SMA

**Short Signal (Sell signal)**:
- A bear trend exists (price < SMA20 < SMA200), and both SMAs have the correct angle which you can set in the input field
- The 20 SMA has the right angle (default: -90 to -45 degrees)
- The 200 SMA has the right angle (default: -90 to -2 degrees)
- A bearish PowerBar occurs near the 20 SMA

## Trade Management

After a signal:
- Stop-Loss is automatically set based on a percentage
- Take-Profit is also set as a percentage
- Trades are automatically closed before US market close (15:55-16:00 ET)

## Visual Representation

The script offers extensive visual elements:
- Arrow symbols for long and short signals
- Color-coded marking of market phases in the background
- Display of stop-loss and take-profit levels
- Statistics tables for trading results
- Overview of the last 10 trades

## Conceptual Alignment with the Video

The implementation in the script exactly matches the concept presented in the video:
- Using the 2-minute chart as the ideal timeframe for trading experience
- Focus on the "Pictures of Power" when the 20 SMA begins to separate from the 200 SMA
- Buying strength bars (PowerBars) near the 20 SMA
- Trading in alignment with institutional money flow

The script automates the manual process described in the video through precise parameters and mathematical calculations for angles, proximity to SMA, and candle body size.