FiveTT Candle Reversals
Trading in the direction of the predominant trend is one of the fundamental trading requirement. That notwithstanding, every trend runs out of strength at some point. At this time, price either makes a temporary retracement or a more permanent change in direction.
As it is important to follow the trend, it is much more important to identify areas of likely reversals. This is where the 5TT Candlestick Reversal Indicator supports the trader.
5TT Candle Reversal Indicator displays directly on the chart points of possible reversals based on three Candlestick Reversal patterns
- Hammer Reversal Pattern also known as Pin Bar, Wick Reversal, Tail Bar, Inverted Hammer, dragonfly, etc
- Doji Reversal Pattern
- Bullish / Bearish Engulfing Candlestick Pattern
See attached screenshots for details of the patterns.
- CandlesBack: Number of bars on the charts on which the indicator monitors starting from the most recent and counting back towards the left
- ShowPinBars: Selecting 'TRUE' allows the indicator to indicate a Hammer / Inverted Hammer Bar Formation
- ShowDojiBars: Selecting 'TRUE' allows the indicator to display the Doji Reversal Pattern on the chart
- ShowEngulfingBars: Selecting 'TRUE' allows the indicator to display Engulfing Bar formations
- 2 x bullish candles
- Followed by a bearish candle (also called a Breather candle)
- Confirmation by the following bullish candle breaking the High of the second bullish candle and the High of the Breather candle
- 2 x bearish candles
- Followed by a bullish candle (also called a Breather candle)
- Confirmation by the following bearish candle breaking the Low of the second bearish candle and Low of the Breather Candle