This is an outside reversal set up from Frank Ochoa's book Secrets of a Pivot Boss. He recommends using this in confirmation with Pivots but I guess you can play with any other indicator of your choice.
PATTERN PSYCHOLOGY "The power behind this pattern lies in the psychology behind the traders involved in this setup. If you have ever participated in a breakout at support or resistance only to have the market reverse sharply against you, then you are familiar with the market dynamics of this setup.
Basically, market participants are testing the waters above resistance or below support to make sure there is no new business to be done at these levels. When no initiative buyers or sellers participate in range extension, responsive participants have all the information theyneed to reverse price back toward a new area of perceived value."
Komentarze
skyzhangty
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Hi, thanks for the code. However, for some reason, it only shows the sell signals. There are no buy signals.
chelo506
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@skyzhangty, Great indicador but I can only see sell signals why is that ?
JoshuaAC
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to see the buy signals change: ReversalLong = low < low[1] and close > high[1] and open <open[1]
Neocard1p23
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Amazing indicator, shows nice zones to breakout. Thank you
chelo506
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Great indicador but I can only see sell signals why is that ?
philipyutzy00
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Wonderful indicator..the only problem I'm having is the alerts are very sporatic...the alert does not go off on every signal..I have played around with it but so far have'nt been able to figure out why...any suggestions?