Multi-Indicator Reversal Signals with Optional Filters and Pyramiding

Summary

This strategy combines RSI, MACD, Williams %R, and Bollinger Bands to count bullish or bearish conditions. A signal occurs when a configurable minimum number of indicators align; bullish readings generally support a long reversal and bearish readings a short reversal. Optional gates require RSI divergence, a volume spike, a reversal candle pattern, or trading during the New York session. A switch can reverse the buy and sell interpretation, though the document provides no evidence for when that setting is appropriate.

Entries may be pyramided up to a configurable limit. Percentage-based stop losses and profit targets are optional and disabled by default, so positions can otherwise lack those exits in the shown logic. Signals are marked after candle close, and the script plots session, volume, divergence, and alignment information. The source describes many adjustable components but gives no backtest results or validation. Indicator agreement does not establish predictive value, and the number of filters and settings creates scope for overfitting; behavior should be evaluated with realistic costs and position controls.

Key ideas

• The strategy counts signals from four indicators and trades when enough align in a reversal direction.
• Divergence, volume, candle-pattern, and session conditions can be enabled as additional filters.
• A signal-flip option swaps the standard long and short logic.
• Pyramiding is configurable, while stop losses and profit targets are optional and off by default.
• The source provides no performance validation for its numerous adjustable rules.

Tags

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