Price Reversal

Definition

The Price Reversal indicator identifies down reversals after up price extensions, and up reversals after down price extensions. A strong, multiple-day move is considered a price extension. The indicator searches for a down (up) setup and triggers on the day after an up (down) price extension has finished. The Price Reversal indicator identifies and plots only the first trigger of the day.

Note: This indicator can be used with intraday charts only.

Default Inputs

NumDays sets the number of days to identify the reversal, 3 by default.

MinConsolIndex sets a value in the range from 1 to NumDays, 2.25 by default.

FinalRangeFactor sets the factor applied to the final range, 1 by default. Use 1 for Crit1, .75 for Crit2.

RevCriteria sets the reversal criteria, 1 by default.

GapSizeFactor sets the factor used for the gap size, .2 by default. This input is only used when RevCriteria = 1 and it forces CurrDayOpGap to be >= PrevDayTR * GapSizeFactor.

HiLineColor sets the color for the plot of the true highest value, magenta by default.

LoLineColor sets the color for the plot of the true lowest value, lightgray by default.