DivergenceBar Reversal Signals in the Profitunity System

Summary

DivergenceBar is described as an indicator for identifying potential reversal bars using Bill Williams’ Profitunity system. It marks bullish reversal bars in green as buy signals and bearish reversal bars in red as sell signals. The indicator omits the system’s angulation condition relative to the Alligator indicator’s mouth, making its stated signal logic a partial application of the broader approach.

The document provides a brief description of the signals and notes that the indicator was originally written in MQL4 and published in 2015. It offers no rules for trade entry beyond the markers, exits, position sizing, or risk controls. It also supplies no chart evidence, backtest, or performance results, so the signal labels should not be taken as proof of predictive value. Traders would need to define how to handle false reversals and test the indicator across instruments and timeframes before relying on it.

Key ideas

• The indicator marks bullish and bearish reversal bars using the Profitunity framework.
• Green markers indicate potential bullish reversals, while red markers indicate potential bearish reversals.
• Its described logic excludes the angulation condition relative to the Alligator indicator.
• The document gives no performance evidence, risk rules, or complete trade management method.

Tags

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