A Bar-Color Reversal System Using Smoothed Candlesticks

Summary

This document describes an Expert Advisor that trades when the Candles_Smoothed indicator changes color at a bar’s close. A transition in either direction, from pink to blue or from blue to pink, generates a trading signal. The strategy therefore treats indicator color changes as reversals and enters at the close of the signal bar.

The system depends on a compiled indicator file and a supporting trading library for broker spreads and order-level stop-loss or take-profit settings. The document refers to tests on GBPJPY using a 12-hour chart in 2015, with default inputs and without stop-loss or take-profit orders. It provides no numerical performance statistics or discussion of transaction costs, parameter sensitivity, or out-of-sample results. The described test is a limited historical example and does not establish that the signal will work across other instruments or market conditions.

Key ideas

• The system opens a trade when the smoothed-candlestick indicator changes color at a bar close.
• Either color transition creates a signal, so the method trades both directions.
• The cited historical test used GBPJPY on a 12-hour chart in 2015 and omitted stop-loss and take-profit orders.
• The document supplies no detailed performance metrics or evidence of robustness beyond that test reference.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.