Four-Bar Price Reversal Entries with Equity-Based Exits

Summary

This TradingView script enters long or short positions from a simple four-bar price pattern. It uses OHLC4 by default: a long signal occurs when the three prior observations form a rising sequence after an earlier decline, while a short signal mirrors that pattern. The page describes the idea more loosely as trading recent upward or downward movement, but the code’s actual conditions are more specific than that description.

Positions close when open profit falls below a threshold tied to equity or rises above one seventh of equity. The script is presented for ETHUSD, BTCUSD, LTCUSD and ETHBTC on four-hour charts. Those are listed test markets, not reported performance evidence; no returns, benchmark, transaction costs, or drawdown results are supplied. The exit calculation is also unusual because its threshold is based on account equity rather than entry price or a fixed risk amount, and the document gives no analysis of parameter robustness or execution effects.

Key ideas

• Long entries follow a three-observation rise preceded by a decline in the selected price series.
• Short entries follow a three-observation fall preceded by a rise.
• Open positions close when profit crosses either of two equity-based thresholds.
• The page lists four crypto markets and four-hour charts but provides no quantitative performance results.

Tags

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