Pinbar Entries with Candle-Range Targets and Trailing Stops

Summary

This strategy identifies bullish and bearish pinbar-like candles using the candle range and the locations of its open and close. A bullish signal requires the body to sit in the upper portion of the range and the low to extend below the previous bar; a bearish signal mirrors these conditions. Users can enable either direction, though long entries are enabled and short entries are disabled by default. A start-date filter can restrict when signals are eligible.

Trade targets and protective stops are derived from the signal candle's range and configurable profit and loss multipliers. The strategy can use a trailing stop after price reaches the target level, or use a fixed limit target; an optional opposing signal can close an open position. The document provides source code and settings but no performance statistics or comparative backtest evidence. Its usefulness therefore lies in illustrating a configurable price-pattern and exit framework, while results will depend on market, timeframe, execution assumptions, and parameter choices.

Key ideas

• The candle pattern checks whether the open and close sit near one end of the bar's range and whether the bar extends beyond a prior extreme.
• Entry direction can be configured, with long trading enabled and short trading disabled by default.
• Profit targets and stop distances are calculated from the signal candle's range using separate multipliers.
• A trailing exit can activate at the target level, while an alternative mode uses a fixed limit target.
• The document provides no performance evidence, so the strategy's effectiveness is unestablished.

Tags

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