Reversal

The primary objective of this indicator is to discern candles that exhibit characteristics suggestive of potential market reversals through the application of candlestick analysis. Extensive observation across various assets and timeframes has revealed the existence of a recurrent reversal pattern. This pattern typically manifests as a sequence of one to three candles that abruptly diverge from the prevailing price action or trend, offering a distinctive signal indicating a potential reversal.

By leveraging the insights gained from this observation, the indicator aims to assist traders in identifying these noteworthy candle patterns that hold the potential to indicate significant market shifts.

The indicator operates as follows: initially, it identifies the lowest close (in the case of a bullish reversal) or the highest close (in the case of a bearish reversal) within a specified number of previous candles, as determined by user input (referred to as "Candle Lookback").

Next, the indicator examines whether the closing price surpasses the high of the previously identified lowest (bullish reversal) or highest (bearish reversal) closed candle within a designated number of candles, as specified by the user (referred to as "Confirm Within").

Versionsinformation:

Now "Reversal" signals have two modes:
> Repainting Mode:
- Signal based on real-time candle without any delay.
> Non-Repainting mode:
- Signal based on confirmed candles, thus with slight delay.