A Nine-Bar Swing Counter for Potential Reversal Signals

Summary

This indicator counts consecutive closes that are above or below the close from four bars earlier, marking upward and downward swings from one through nine. A sequence that fails before reaching nine receives a failure marker. After a completed nine-count, counting pauses for a resting bar; a qualifying move can then start a new sequence. The display places count labels near each candle, with a configurable spacing setting.

The accompanying strategy description treats a completed upswing or downswing as a possible reversal warning. It suggests that a contrasting tenth candle may prompt an exit from a long or short position, respectively. These are heuristic claims from a forum discussion, not demonstrated results: the document provides no backtest, performance statistics, market or timeframe validation, or risk controls. The code and written description also contain a bar-offset detail that may merit checking before use, so signals should be independently verified.

Key ideas

• The indicator starts an upward or downward count when a close exceeds or falls below the close four bars earlier.
• A swing sequence counts to nine, while an interrupted sequence is marked as a failure.
• A completed count is followed by a resting bar before another sequence can begin.
• The strategy description treats completed counts and a contrasting next bar as possible exit warnings.
• The document provides no empirical evidence that the reversal signals are profitable or reliable.

Tags

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