This indicator, based on the ATR, allows you to identify the potential reversal on price and helps you identify the Support and Resistance.
When the price moves far away from the multiple moving average, the background color changes : - Red for Short potential entry - Green for Long potential entry
There are 2 ways to use this script : - Conservative : Use it in your trading system to Take Profit ==> when the background turns red, close LONG position (and green = close short). - Aggressive : As soon as the background turns red, enter SHORT (and green = long).
For aggressive use, I recommand you to couple this script with an oscillator to confirm the signals (RSI stochastic for example).
You can customize the sensibility with 4 levels : - low probability of reversal - medium probability of reversal - high probability of reversal - very high probability of reversal
PS : the "High" and "Very High" probability setup are the only one I'm using in my trading systems.
Hi! values that I can set for the fields - low probability, medium probability, high probability of reversal, very high probability of reversal what unit is used? Are these perhaps values expressed in [%], or some other unit? And you did an awesome job keep it up!
wingoutoulouse
⋅
@p4wix, the code is public, the units are the period for SMA and True Range smoothing. Basically this indicator calculates : 4 top lines : SMA (with 4 periods : Low Spike / Mid Spike ...) + True range (smoothed with period : Low Spike / Mid Spike ...) 4 bottom lines : SMA (with 4 period : Low Spike / Mid Spike ...) - True range (smoothed with period : Low Spike / Mid Spike ...)
Depending on how you sets it, Spikes are detected if price goes above (or below) the lines you selected.
NB : if you select only the high probability, it automatically activates the condition for low and medium : the price needs to be above the 3 lines : Low, Medium and High to have a Spikes detected.
values that I can set for the fields - low probability, medium probability, high probability of reversal, very high probability of reversal
what unit is used? Are these perhaps values expressed in [%], or some other unit?
And you did an awesome job keep it up!