XPoints Reversal Signals from Wide Bars at Channel Boundaries
Summary
The XPoints indicator seeks possible reversal points using unusually wide candles near the edges of a price channel. It defines a candidate bar by comparing its high-low range with the absolute open-close body, applying minimum bar-size and channel-width thresholds, and checking whether the low touches the lower channel boundary or the high reaches the upper boundary. A subsequent bar is examined for movement in the predicted direction and for midpoint positions relative to the channel center and each other, to filter some false signals.
Inputs include channel period, thresholds, a permitted signal-time window, and a chart offset. The description says night signals are ignored by default and suggests treating signals cautiously, either with other indicators or as warnings against trades that oppose the prediction. It also describes using the offset to approximate entries near local extrema. The author explicitly notes that false signals may occur; the text provides no quantitative test results, and the example is tied to an EURUSD chart.
Key ideas
- XPoints identifies candidate reversal bars with a large high-low range relative to the candle body near a channel boundary.
- Minimum bar size and channel width thresholds help determine whether a bar qualifies as a candidate.
- The next bar's movement and midpoint position are used to filter candidate signals.
- Time filters and a chart offset are available, but false signals remain possible and no performance statistics are provided.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.