OPEN-SOURCE SCRIPT
reversal candle
This indicator is a Technical Reversal Pattern Suite designed to identify specific candlestick formations that suggest a potential change in market direction. It combines trend filtering, volume analysis, and pattern recognition into a single tool.Here is a breakdown of how it works:1. Trend Filter (9 SMA)The indicator uses a 9-period Simple Moving Average (SMA) as the "filter" for the entire system.Why? Reversal patterns are highly contextual. A pattern that looks like a reversal in a downtrend is actually a "continuation" pattern if the overall trend is strongly upwards. By requiring the price to be on a specific side of the 9 SMA, the script ensures you are only looking for trades that align with the short-term momentum.2. Pattern Recognition LogicThe script looks for six distinct candlestick patterns, split by the trend they appear in:PatternCategoryLogicEngulfing (BE/BU)Trend ReversalOne candle's body completely "eats" or engulfs the previous candle's body, signaling a shift in control.Hammer (HM)BullishSmall body at the top with a long lower shadow; implies sellers were rejected.Inverted Hammer (IH)BullishSmall body at the bottom with a long upper shadow; shows buyers testing the resistance.Shooting Star (SS)BearishSmall body at the bottom with a long upper shadow; implies buyers were rejected at a peak.Hanging Man (HM)BearishSmall body at the top with a long lower shadow; implies that despite a low price, sellers are stepping in during an uptrend.3. Volume ConfirmationThe script includes a Volume Filter that calculates the average volume over the last 20 periods (ta.sma(volume, 20)).The Logic: A reversal pattern is considered "weak" or "noisy" if it happens on low volume. By requiring volume > volAvg, the indicator ensures that the pattern is backed by significant market participation, which increases the probability that a "real" move is occurring.4. Visual ManagementDynamic Labels: It uses a latestLabel variable to ensure that only the most recent signal remains on your screen, preventing historical clutter.Highlighting: It uses barcolor() to change the candle color the moment a pattern is detected, making the signal immediately visible without needing to check the labels.Summary of Indicators UsedMoving Averages: 9 SMA (Trend), 20 SMA (Volume).Candlestick Math: Uses the relationship between open, close, high, and low to calculate bodySize and shadow lengths.Logical Confluence: It forces four conditions to be true simultaneously before alerting: Trend direction + Pattern geometry + Volume threshold + Logic validity.This tool is designed to act as a "Decision Point" indicator. It does not tell you to buy or sell, but rather tells you when the market has reached a state of "exhaustion" where a reversal is statistically more likely to happen.
Skrip open-source
Dengan semangat TradingView yang sesungguhnya, pembuat skrip ini telah menjadikannya sebagai sumber terbuka, sehingga para trader dapat meninjau dan memverifikasi fungsinya. Salut untuk penulisnya! Meskipun Anda dapat menggunakannya secara gratis, perlu diingat bahwa penerbitan ulang kode ini tunduk pada Tata Tertib kami.
Pernyataan Penyangkalan
Informasi dan publikasi ini tidak dimaksudkan, dan bukan merupakan, saran atau rekomendasi keuangan, investasi, trading, atau jenis lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Ketentuan Penggunaan.
Skrip open-source
Dengan semangat TradingView yang sesungguhnya, pembuat skrip ini telah menjadikannya sebagai sumber terbuka, sehingga para trader dapat meninjau dan memverifikasi fungsinya. Salut untuk penulisnya! Meskipun Anda dapat menggunakannya secara gratis, perlu diingat bahwa penerbitan ulang kode ini tunduk pada Tata Tertib kami.
Pernyataan Penyangkalan
Informasi dan publikasi ini tidak dimaksudkan, dan bukan merupakan, saran atau rekomendasi keuangan, investasi, trading, atau jenis lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Ketentuan Penggunaan.