Long-Only Reversal Signals Using Candle Shape and Recent Closes
Summary
This strategy generates long entries from two consecutive close comparisons and a candle range-to-body measure. A configurable delta scales the close comparisons, while buy and sell resistance thresholds filter the candle measure. When the buy conditions hold, the script opens a long position; when the sell conditions hold, it closes that position. It does not open short positions.
The listing describes the script as an adaptation intended for four-hour and three-month charts and says it is based on a hybrid reversal indicator. It provides source code and adjustable inputs, but no performance report, test period, asset-specific results, or evidence supporting the stated profit comparison. The candle calculation divides the high-low range by the open-close body, so zero-body candles can create a division-by-zero issue. The strategy also specifies no stop loss, position sizing, or modeled trading costs. Its timeframe suitability and profitability therefore remain unverified by the information shown.
Key ideas
- Long entries require two consecutive close comparisons scaled by a configurable delta.
- A candle range-to-body measure is compared with a buy threshold before entering long.
- A separate close pattern and sell threshold trigger closure of the long position.
- The listing supplies no backtest evidence, costs, or risk controls to assess performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.