Candlestick Reversal Signals with Adjustable Resistance Filters

Summary

This strategy generates long entries and closes them on a sell signal using recent candle ranges and price crossings. It defines each candle's upper and lower body edges, then compares the current and previous closes, scaled by a configurable delta, with those edges from recent bars. A resistance value based on the candle's full high-low range relative to its body filters both signal directions.

The delta and separate buy and sell resistance thresholds are adjustable, and the accompanying notes recommend the advanced version for selected hourly and higher chart intervals. The implementation only opens long positions and closes them; it does not issue short entries. The document explains the rule structure but supplies no trade examples, backtest statistics, stop logic, or risk controls. The ratio can also be problematic when the candle body is zero, and the scaling and threshold choices require evaluation across instruments and timeframes before the signals can be interpreted reliably.

Key ideas

• Signals combine candle body boundaries with crosses involving the current and prior closes.
• A configurable delta changes how closes are scaled for buy and sell checks.
• The candle range-to-body ratio is compared with separate buy and sell resistance thresholds.
• A buy signal opens a long position, while a sell signal closes that position.
• The source provides no performance evidence or explicit stop and position-sizing rules.

Tags

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