Find Closing Price Reversal
The indicator searches for the Price Action Closing Price Reversal pattern.
It is a strong reversal pattern, particularly if appears after a quick movement.
The signal bar opens with a gap from the previous bar's close, whereby the open price is next to the bar's high. The close price is below the close price of the previous bar, and it is close to the minimum price of the bar (for the bearish setup). And vice versa for the bullish setup.
Like any other Price Action pattern, this one also requires confirmation factors (support/resistance levels, signals of other indicators, etc.).
The indicator marks the signal bar above/below and draws a level for setting a pending order.
It has two parameters:
- Relative size of the candle - the relative size of the pattern. The smaller the value, the smaller the sizes of bars to be involved in the pattern search.
- ATR's period for calculate relative candle size - period of ATR for the first parameter calculation.