Combining 123 Reversal Signals with Modified Price-Volume Trend

Summary

This script combines a price reversal setup with a modified price-volume trend (MPVT) filter. The reversal component tracks a position when two consecutive closes move in the same direction and the fast and slow stochastic readings meet specified level conditions. Its description attributes the setup to a futures trading book and characterizes it as a reverse-style strategy.

The MPVT component accumulates volume-scaled percentage changes in the OHLC4 price, then compares the resulting series with its simple moving average. A long or short signal is active only when both components agree; otherwise, the script closes positions. An optional setting reverses the combined direction. The document supplies code and a plain-language description, but no performance results or comparative tests. Its stochastic conditions and the code's defaults should be checked carefully against the prose before use, and the source notes that the related article is copyrighted and the script is educational.

Key ideas

• The reversal component uses consecutive close movements together with fast and slow stochastic conditions to set direction.
• The MPVT component accumulates volume-scaled price changes and compares the result with a moving average.
• Trades are entered only when the reversal and MPVT signals agree; disagreement closes positions.
• A setting can invert the direction of the combined signal.
• The document provides no backtest results, so profitability is not established.

Tags

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