Bullish Reversal Bar DCA With Layered Entries and ATR Targets

Summary

This Pine strategy builds a long position after a bullish reversal bar: the close must be above the bar midpoint, and the low must match the lowest low over a configurable lookback. It can add up to four position layers as price falls through percentage thresholds, with a configurable size multiplier. The exit target is based on an ATR multiple, while optional MFI and Awesome Oscillator filters can screen entries.

The script exposes date limits and settings for layer spacing, position sizing, and take profit, and includes assumptions for commission, slippage, and bar magnification in its strategy configuration. The supplied excerpt ends before the remaining trade logic, so it does not fully show how signals, invalidation, or exits are implemented. No performance results are provided; the setup alone does not establish profitability, and averaging down can increase exposure as price declines.

Key ideas

• A bullish reversal bar is defined by a close above the bar midpoint and a low equal to the lookback minimum.
• The strategy supports up to four entry layers as price moves against the position.
• Layer spacing, position scaling, oscillator filters, and the ATR-based profit target are configurable.
• The excerpt omits later trade logic and reports no backtest performance.

Tags

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