Equal-High and Equal-Low Reversal Entries with ATR-Based Targets

Summary

This strategy uses repeated prices at adjacent candle extremes as a setup. Two successive equal lows form a potential long pattern, while two successive equal highs form a potential short pattern. It enters at the close of the next candle when that candle makes a higher low for a long or a lower high for a short, and only when no position is open. The author describes the intended chart as weekly.

Stops are placed one minimum tick beyond the repeated low or high. The profit target is set from the entry-to-stop distance multiplied by a configurable reward factor, with ATR used to ensure the indicator has initialized rather than to size the target itself. The script also marks equal and mirrored highs or lows and highlights unusually wide candles, but those visual markers are not entry filters. No performance statistics or market-specific evaluation are supplied. The stated entry timing is presented as suitable for backtesting, but actual fills, costs, and robustness across instruments and timeframes are not demonstrated.

Key ideas

• Adjacent candles with matching lows or highs establish long or short setups.
• A long entry requires the next candle to make a higher low, while a short requires a lower high.
• Stops sit one minimum tick beyond the repeated extreme.
• Targets scale the entry-to-stop distance by a configurable reward multiplier.
• The script provides no reported performance results or evidence that the rules generalize beyond the described weekly chart use.

Tags

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