This script is a simple implementation of a QFL (Quickfingers Luc) base scanner.
This QFL base scanner uses a different approach to some other QFL base scanners that are on TradingView. Other TradingView scripts look for a candlestick pattern of two lower lows followed by two higher lows combined with an increase in volume. This can generate some unexpected results where some minor dips can meet the pattern and are marked as a base, but some major dips do not and are ignored.
This QFL base scanner instead looks for the lowest low in a given period and marks it as a base. The longer the period of the lowest low, the more significant the bases will be. Buys are marked when the price has bounced x% above the base and then fallen y% below the base. This approach seems to give more predictable (and tradable) results.
If looking at the past script results, you may think that the script is perfectly timing entry points at the bottom of market dips. This is NOT the case. The script is actually showing buy signals when the price falls y% below the PREVIOUS base. The current base is only retrospectively marked some periods later once the reversal is confirmed. New bases are not tradeable using this script, but a percentage fall from the previous base is.
Enjoy.