N Reversal Detector Combines Trend Filters with Three-Bar Reversal Signals

Summary

The N Reversal Detector is a configurable chart indicator that combines reversal patterns with an optional trend filter. Users can define the prevailing trend with a fast and slow moving-average comparison, an ATR-based Supertrend, or Donchian Channel highs and lows. The reversal module looks for price moves that have persisted across a configurable window and then begun to turn; bullish and bearish signals are plotted with chart markers and levels. The settings also allow signals that run against the detected trend, which can increase signal frequency while raising the chance of false alarms.

The document explains the indicator’s components and configuration, but its available text is incomplete and includes implementation details that may be platform-specific. It gives no backtest, market comparison, or evidence that the signals predict profitable reversals. Parameter suggestions are examples rather than validated settings, so performance and behavior would need independent testing for each market and timeframe.

Key ideas

• The indicator offers moving averages, Supertrend, and Donchian Channels as alternative trend filters.
• It identifies bullish and bearish reversal patterns over a configurable bar window.
• A trend alignment setting can restrict signals to the prevailing direction or permit countertrend signals.
• The indicator plots reversal markers and associated price levels on the chart.
• The document provides no performance evidence, and its suggested parameter settings are not validated.

Tags

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