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Bearish Wick Reversal

█ STRATEGY OVERVIEW
The "Bearish Wick Reversal Strategy" identifies potential bullish reversals following significant bearish price rejection (long lower wicks). This counter-trend approach enters long positions when bearish candles show exaggerated downside wicks relative to closing prices, then exits on bullish confirmation signals. Includes optional EMA trend filtering for improved reliability.
█ What is a Bearish Wick?
A price rejection pattern where:
█ SIGNAL GENERATION
1. LONG ENTRY CONDITION
2. EXIT CONDITION
█ PERFORMANCE OVERVIEW
The "Bearish Wick Reversal Strategy" identifies potential bullish reversals following significant bearish price rejection (long lower wicks). This counter-trend approach enters long positions when bearish candles show exaggerated downside wicks relative to closing prices, then exits on bullish confirmation signals. Includes optional EMA trend filtering for improved reliability.
█ What is a Bearish Wick?
A price rejection pattern where:
- Bearish candle (close < open) forms with extended lower wick
- Wick represents failed selloff: Low drops significantly below close
- Measured as: (Low - Close)/Close × 100 (Negative percentage indicates downward extension)
█ SIGNAL GENERATION
1. LONG ENTRY CONDITION
- Bearish candle forms with close < open
- Lower wick exceeds user-defined threshold (Default: -1% of close price)
- The signal occurs within the specified time window
- If enabled, the close price must also be above the 200-period EMA (Exponential Moving Average)
2. EXIT CONDITION
- A Sell Signal is generated when the current closing price exceeds the highest high of the previous seven bars (`close > _highest[1]`). This indicates that the price has shown strength, potentially confirming the reversal and prompting the strategy to exit the position.
█ PERFORMANCE OVERVIEW
- Ideal Market: Volatile instruments with frequent price rejections
- Key Risk: False signals in sustained bearish trends
- Optimization Tip: Test various thresholds
- Filter Impact: EMA reduces trades but improves win rate and reduces drawdown
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本著TradingView的真正精神,此腳本的創建者將其開源,以便交易者可以查看和驗證其功能。向作者致敬!雖然您可以免費使用它,但請記住,重新發佈程式碼必須遵守我們的網站規則。
免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。