OPEN-SOURCE SCRIPT
Reversal & COG
This trading strategy is a multi-layered trend-reversal system that combines the **Reversal 123** methodology with a **Center of Gravity (COG)** channel filter. The core logic requires a dual-confirmation: the Reversal 123 component identifies short-term momentum shifts using specific price action patterns and Stochastic Oscillator levels, while the Center of Gravity indicator establishes a "fair value" corridor based on linear regression. A trade is only executed when both indicators align—entering long when price breaks above the lower COG band amid a bullish reversal pattern, and entering short when it breaks below the upper band during a bearish pattern. To enhance risk management, the script includes directional toggles and an optional percentage-based stop loss, ensuring that entries are only taken in the user's preferred direction while protecting capital against sudden volatility.
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.