Candle-Run Reversals Confirmed by RSI with Fixed Risk Targets

Summary

The visible portion describes a reversal scalping strategy that looks for a run of same-direction candles moving away from an earlier reversal candle. The run length is configurable, and a small allowance can permit one candle to close slightly against the run. An optional RSI filter checks that RSI is above a floor and rising for longs, or below a ceiling and falling for shorts. Inputs also allow users to enable long and short trades separately; the shown defaults allow longs and disable shorts.

Trade management is designed around a fixed stop and a reward target selected as a multiple of the risk distance, with available target settings from 0.5R to 2R. The provided document cuts off during the reversal-candle logic, before the full entry conditions, stop placement, exits, or any strategy report and results are visible. Therefore the pattern’s precise implementation and empirical performance cannot be assessed from this excerpt. The displayed capital, sizing, commission, slippage, and margin settings are configuration details, not evidence of profitability.

Key ideas

• The setup looks for a sequence of directional candles following a reversal candle.
• The run length and tolerance for a counter-direction candle are configurable.
• An optional RSI filter requires momentum to rise for longs or fall for shorts while RSI meets a directional threshold.
• The strategy pairs a fixed stop with a selectable reward target expressed as a risk multiple.
• The excerpt ends before complete entry and exit logic or performance evidence is shown.

Tags

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