Modified Slingshot Indicator for Trend Pullbacks and Reversals
Summary
The indicator combines a long-term channel with three shorter moving averages to identify trend direction, pullbacks, and potential continuation entries. It calculates an 89-period average and a channel whose width is based on an 89-period average of true range. A bullish trend requires the 13-, 21-, and 34-period averages to sit above the channel’s upper boundary; a bearish trend requires them below its lower boundary. Pullbacks within those conditions are marked as aggressive signals, while a close crossing back through the boundary after being on the other side is marked as a conservative signal.
The chart displays the channel, colored moving-average markers, trend arrows, and highlighted candles. The document provides indicator logic, not performance evidence or a tested trading plan. Its description frames the pattern as a false breakout and reversal, but the code’s signals are defined by moving-average and channel conditions; it does not independently establish support or resistance levels. Users would need to evaluate the indicator across instruments and timeframes and define risk controls before relying on it.
Key ideas
- Trend direction is defined by three shorter averages positioned beyond a channel built around an 89-period average.
- The channel width uses an average of true range to scale its boundaries.
- Aggressive signals mark counter-channel closes during an established trend.
- Conservative signals mark a close crossing back through the relevant channel boundary.
- The indicator provides visual signals but no backtest results or risk-management rules.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.