Three-Bar Reversal Confirmation for TTM Scalper Signals

Summary

This strategy approximates a TTM scalper buy-and-sell method using recent closing-price patterns to identify potential reversals. A sell trigger occurs when the previous close is below the current close and either of the two earlier closes is below the previous close; the buy trigger mirrors those comparisons. The signal state switches between bullish and bearish, coloring bars and plotting a marker at the relevant high or low.

The script enters long or short according to the current signal, with an option to reverse the trade direction. The document warns that reversal markers are confirmed only after the third bar, so they do not appear in real time at the turning point. It characterizes the method as an approximation of a published scalping approach and gives no backtest results, exit rules, or evidence of profitability. The indicator’s delayed confirmation and sparse risk-management detail limit what can be inferred about its practical trading performance.

Key ideas

• Recent closing-price comparisons trigger alternating buy and sell states.
• The strategy enters in the direction of the active state, with an option to reverse signals.
• Reversal markers appear only after confirmation by the third bar and are therefore delayed.
• The document presents the method as an approximation and supplies no performance evidence or detailed risk rules.

Tags

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