Aggressive Pullback Indicator

This indicator is designed to be used with the rules of Steven Hart's Aggressive Pullback Strategy. It is intended for use on the 4-hour timeframe but will work on all timeframes. The rules are customizable, but the default settings are:

Minimum Candle Pullback: 2
How Many Candles We Can Engulf: 3
Override Rule #2 If Candle's Body % of ATR Is Less Than: 99%
ATR Length: 14
EMA Length (close): 50
How Far To Look Back For Swings: 5 bars (this is used to invalidate engulfing candles that close above the swing high/lows that started the 2 candle pullback)

Visit www.thetradingchannel.net or http://www.youtube.com/channel/UCGL9ubdGcvZh_dvSV2z1hoQ/videos for information on how to use the strategy correctly (and profitably)!

* Note that like all indicators, it is not 100% accurate and will miss some signals. But it does catch the majority of them :)

Versionsinformation:

- Added fractal option for entries to improve signal "quality" (entry candle must be a 3-point fractal)
- Improved signal validity when price is hovering around EMA (according to the strategy rules)
- Implemented optional ATR stop loss algorithm for making stops and targets slightly tighter while still adjusting for volatility.

ATR Stop Loss Algorithm:

If ATR is under 30 then stop loss = 20 pips
If ATR is over 30 but under 50 then stop loss = 30 pips
If ATR is over 50 but under 100 then stop loss = 50 pips
If ATR is over 100 then stop loss = 100 pips

Versionsinformation:

- Added coloured EMA (optional).

Versionsinformation:

- Changed alert message for easier editing.

Versionsinformation:

Minor improvements

Versionsinformation:

Converted to Pine Script version 4 and optimized code