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SMA7 Tail Reversal

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📌 Description:
The SMA7 Tail Reversal indicator is designed to identify potential counter-trend trading opportunities by checking if candle wicks (tails) respect a key moving average level (SMA7).
This indicator highlights price action where candles are clearly separated from the moving average, suggesting a possible reversal or temporary correction.

📌 How It Works:
  1. Moving Average Calculation:
    Calculates a simple moving average (SMA) of length 7 to act as the primary trend filter.

  2. Candle Classification:

    Bullish Candle: A candle where the closing price is higher than the opening price, with a short upper wick.

    Bearish Candle: A candle where the closing price is lower than the opening price, with a short lower wick.

  3. Conditions for Coloring Candles:
    Long Condition (Green Candle):

    High & Low are both below the SMA7 line.

    Volume is above the 20-period average.

    A bullish candle is detected.

    Short Condition (Red Candle):

    High & Low are both above the SMA7 line.

    Volume is above the 20-period average.

    A bearish candle is detected.


📌 Visual Representation:
Green Candles: Potential long signals when price action stays below the SMA7 line.
Red Candles: Potential short signals when price action stays above the SMA7 line.
Yellow Line: SMA7, used as the dynamic threshold for signal generation.


📌 Usage:
Best applied to volatile markets with clear trends.
Effective in detecting counter-trend opportunities where price diverges from the SMA7 line.
Works well with additional confirmation tools for better accuracy.




發行說明
// Softer candle color settings
var color longCol = #6EE7B7 // Light Green (Soft long signal)
var color shortCol = #FCA5A5 // Light Red (Soft short signal)
發行說明
without plot sma7
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sma 7
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plotbar(open, high, low, close, color=barCol)
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ALMA condition updated!
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color updated!
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rollbacked
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Zigzag mode updated
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no zigzag
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Zigzag styled dotted

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