Detecting Larry Williams Smash Day Reversals with a Chart Indicator
Summary
The document describes a custom MQL5 indicator for marking confirmed smash day reversal patterns. A bullish setup begins when a bar closes below the lows of a selected number of earlier bars without being an outside bar; confirmation occurs when price rises above that bar’s high. The bearish setup reverses those conditions. Arrows mark the relevant pattern on the chart, while the indicator leaves trade decisions to the user.
A configurable lookback lets traders choose how far back the smash bar must reach. The article frames the signal as an objective way to spot a failed breakout, while recommending that traders consider broader trend, news, and market structure before acting. It focuses on building and displaying the indicator, rather than evaluating its profitability. No quantified trading results or systematic validation are provided, so the signals should be treated as pattern-detection aids whose usefulness may vary across markets and conditions.
Key ideas
- A smash reversal forms when an apparent break beyond recent extremes fails and price crosses the smash bar in the opposite direction.
- The indicator marks bullish and bearish confirmations with chart arrows.
- A configurable lookback controls how many prior bars define the extreme.
- The tool detects patterns but does not automate entries or establish profitability.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.