Candle-Range Threshold Rules for Reversal Trades
Summary
The document describes two entry rules based on the direction of the latest completed candle and the price range spanning that candle and an older candle. A bearish latest candle can trigger a buy when the older candle’s high is sufficiently far above the latest candle’s low. A bullish latest candle can trigger a sell when the latest candle’s high is sufficiently far above the older candle’s low. The threshold is a configurable step value, and a reverse setting swaps the resulting trade direction.
The excerpt gives the conditions as code and mentions a EURUSD, hourly test context, but provides no test results, parameter values, exit rules, or risk controls. It is therefore a narrow description of entry logic rather than enough information to assess a complete strategy or its performance. The bar references and threshold units also depend on the implementation and instrument data.
Key ideas
- A bearish latest candle can trigger a buy when a cross-bar price distance exceeds a configured threshold.
- A bullish latest candle can trigger a sell under a corresponding distance condition.
- A reverse option switches the direction of the triggered order.
- The excerpt gives no performance evidence or complete trade-management rules.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.