Equal High and Low Reversals with ATR-Based Exits

Summary

This countertrend system looks for repeated highs or lows within a configurable price tolerance, treating those levels as possible liquidity areas. During a defined session, it enters short near repeated highs and long near repeated lows, provided the level has been touched at least twice. The example uses a 30-bar lookback and a 5-point tolerance. It plots qualifying levels and entry markers to make the signals visible on a chart.

Stops and profit targets are set from current ATR, with default distances of 1.5 and 2.5 ATR respectively. The document describes the approach for NQ/MNQ futures on short chart intervals and says to adjust tolerance for other instruments. It provides no backtest results or performance evidence. The code does not explicitly close positions at session end, despite the accompanying description suggesting that it does; traders should also check how the touch-count logic behaves on their chosen market and timeframe.

Key ideas

• The system treats repeated highs and lows within a tolerance as potential reversal levels.
• It enters only during the configured session and while no position is open.
• The example sets stop and target distances using ATR multiples.
• The document offers no performance results and recommends testing on the intended market.

Tags

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