Not a bad Trend Reversal pattern. Maybe someone can make an indicator? - page 2
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How about this?
another option
At a distance of 3 bars to the left (I don't know how to do this on the history, I describe how I do it on a live chart).
1. If the high of the second bar on the left is higher than the high of 1 and 3 (fractal),
2. take low 2 or 3 (which will be lower), and
3. wait for the candle, which will close below this level. This is the signal.
If such a candle doesn't appear, and there is a new high, above the bar #2 - that is, a higher maximum, then we should return to point 1, since a new fractal has been formed.
This is for the top-down reversal. For a bottom-up reversal replace the high in the description with a low and vice versa... don't know if I have answered or not...
How about this?
Sometimes it is not correct anyway. 2nd variant of indicator:
it is not clear where the signal is coming from.
Variant 3 of the indicator:
There should be a signal, but there isn't.
Maybe we should divide it into two indices, one would check high and one would check low, so that they would work independently?
So the question is, how many bars after the formation of a fractal can we wait for? for there may be situations where a fractal is formed and the price closes above/below high/low in 10 bars. then it will be a signal?
Sometimes it is not correct anyway. 2nd variant of indicator:
it is not clear where the signal is coming from
Variant 3 of the indicator:
There should be a signal, but there isn't.
Maybe to divide it into 2 indices, one would check for high and the other for low, and make them work independently?
in post 1 the breakdown line is defined by 2 bars
The question is, how many bars can we wait for after the fractal is formed? For there may be situations where the fractal is formed and the price closes above/below high/low in 10 bars.
wait as long as
1) no higher fractal appears - then the previous fractal will no longer be a local min/max, and the countdown will start for the new level formed by the new fractal
2) there is no signal.
I.e., yes, we wait until the blue moon occurs or the fractal is cancelled by the new higher/lower fractal
Here are all the signals for the week (only upwards), for example. 7 buy signals in 4.5 days.
in 1 post the breakdown line is defined by 2 bars
That's because it's low. If it was lower at the first one (at the fractal), we would use it. The level is counted from the lowest low of either of the two bars - fractal or the one following it. Forgive me for not explaining it more clearly at once.
So the question is, how many bars after the formation of a fractal can we wait for? for there may be situations where a fractal is formed and the price closes above/below high/low in 10 bars. then it will be a signal?
the fractal on your picture is canceled out by higher fractals, they have set a new level. marked in blue
This is because it is lower. If it were lower at the first one (at the fractal), we would count by it. The level is counted from the lowest low of either of the two bars - fractal or the one following it. Forgive me for not explaining it more clearly at once.
You're welcome.