Specification
The reversal candle should be considered only when it forms near an important level, such as:
Pivot levels
Support levels
Resistance levels
CPR levels
Any other intraday S/R level if required
Buy:
Price comes near a support / pivot / CPR level.
A bullish reversal candle is formed around that level.
Once the candle is closed, mark its high.
If price breaks the high of that reversal candle, give BUY signal.
Reversal candle low can be used as SL.
Sell:
Price comes near a resistance / pivot / CPR level.
A bearish reversal candle is formed around that level.
Once the candle is closed, mark its low.
If price breaks the low of that reversal candle, give SELL signal.
Reversal candle high can be used as SL.
The main thing is that every candle should not be treated as a reversal candle. It should first be checked whether it is forming around pivot, support, resistance or CPR level.
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