OPEN-SOURCE SCRIPT
Daily Range Reversals
Key Features of "Daily Range Reversals"
Continuous Daily Box: The purple range box now starts at the beginning of the trading day and extends seamlessly through the price action all the way to the right-side PO3 visualization. It automatically tracks the previous day's High-Low range with a dashed midpoint line.
Reversal Pattern Detection:
Engulfing: Identifies when a candle body completely "swallows" the previous candle's body.
Hammers & Shooting Stars: Detects single-bar rejections with long wicks (at least 2x the body size).
Strategic Filtering:
35% Zone Check: Signals only trigger if the candle closes within the upper 35% or lower 35% of the previous day's range. This ensures you only see high-probability reversals at the extremities.
High-Volume Requirement: A signal only appears if the volume of the reversal bar is significantly higher than its 20-period average (adjustable via the "Volume Multiplier").
Signal Cooldown: To keep the chart clean, the script waits for 3 bars (default) after a signal before allowing another one to prevent clustering.
PO3 Side-by-Side Visualization: To the right of the price, you can see the completed Previous Daily Candle next to the Active Daily Candle updating in real-time. This helps you visualize how the current day is expanding relative to yesterday's range.
Replay Optimized: I used persistent objects that update only on the last bar, which fixes the "ghosting" issue you experienced in Bar Replay.
How to use it:
Monitor the Zone: Watch for price to enter the top or bottom 35% of the purple daily box.
Confirm the Pattern: Look for a triangle signal (Bullish below, Bearish above). These will only appear on a candle close that confirms both the pattern and the high-volume criteria.
Entry: These signals are designed to capture reversals back toward the daily midpoint or the opposite side of the range.
Continuous Daily Box: The purple range box now starts at the beginning of the trading day and extends seamlessly through the price action all the way to the right-side PO3 visualization. It automatically tracks the previous day's High-Low range with a dashed midpoint line.
Reversal Pattern Detection:
Engulfing: Identifies when a candle body completely "swallows" the previous candle's body.
Hammers & Shooting Stars: Detects single-bar rejections with long wicks (at least 2x the body size).
Strategic Filtering:
35% Zone Check: Signals only trigger if the candle closes within the upper 35% or lower 35% of the previous day's range. This ensures you only see high-probability reversals at the extremities.
High-Volume Requirement: A signal only appears if the volume of the reversal bar is significantly higher than its 20-period average (adjustable via the "Volume Multiplier").
Signal Cooldown: To keep the chart clean, the script waits for 3 bars (default) after a signal before allowing another one to prevent clustering.
PO3 Side-by-Side Visualization: To the right of the price, you can see the completed Previous Daily Candle next to the Active Daily Candle updating in real-time. This helps you visualize how the current day is expanding relative to yesterday's range.
Replay Optimized: I used persistent objects that update only on the last bar, which fixes the "ghosting" issue you experienced in Bar Replay.
How to use it:
Monitor the Zone: Watch for price to enter the top or bottom 35% of the purple daily box.
Confirm the Pattern: Look for a triangle signal (Bullish below, Bearish above). These will only appear on a candle close that confirms both the pattern and the high-volume criteria.
Entry: These signals are designed to capture reversals back toward the daily midpoint or the opposite side of the range.
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.