Countertrend Entries After Successive Expanding Candles

Summary

The Expert Advisor described here seeks pullbacks after a strong one-way move. It counts a user-defined run of bars moving in the same direction, with each candle body larger than the previous one, then opens a position in the opposite direction. The configurable inputs include the required run length, trade size, stop-loss distance, and take-profit distance. A zero stop-loss or take-profit setting disables that exit, while a zero lot setting delegates sizing to another parameter.

The document gives only a brief strategy description and says an image shows the behavior in a strategy tester’s visual mode; it provides no numerical backtest results, market, timeframe, or evidence that the pattern predicts reversals. The approach is a countertrend hypothesis: expanding directional candles are treated as a possible exhaustion move. Without further rules for market conditions, execution, and risk sizing, the brief does not establish when the reversal is likely to occur or how the system performs across instruments.

Key ideas

• The advisor looks for a sequence of same-direction bars whose bodies increase in size.
• After the sequence, it opens a position against the preceding move.
• The required number of bars and trade size are configurable.
• Stop loss and take profit can be set by point distance or disabled.
• The description offers no quantified performance evidence or market-specific validation.

Tags

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