DeMark Reversal Points from Comparisons Across Lagged Bars

Summary

This indicator classifies directional pressure by comparing a selected price source with values from a fixed number of bars earlier. Across a configurable lookback window, it counts how often the source is higher or lower than its lagged counterpart. A fully lower set of comparisons marks a bullish reversal state, while a fully higher set marks a bearish state; the broader signal also follows whichever count dominates. Changes across the neutral level generate buy or sell alerts and chart markers, and bar coloring can display the current state.

The document includes a BTC/USDT futures configuration using four-hour bars over a year, but supplies no performance results. Inputs allow a source, resolution, lookback length, comparison lag, repainting behavior, and bar coloring. The included trading logic enters long or short on signal changes, but does not specify exits or risk controls. Signals depend on configuration and may differ between confirmed and real-time bars depending on repainting settings, so the backtest setup alone does not establish effectiveness.

Key ideas

• The indicator counts higher and lower comparisons between a selected source and its lagged values.
• A fully lower comparison window maps to a bullish state, while a fully higher window maps to a bearish state.
• The dominant comparison count also determines the displayed directional signal.
• Crosses into bullish or bearish states trigger alerts and illustrative long or short entries.
• The document provides no performance results or trade exit and risk management rules.

Tags

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