Bearish Wick Reversal

█ STRATEGY OVERVIEW
The "Bearish Wick Reversal Strategy" identifies potential bullish reversals following significant bearish price rejection (long lower wicks). This counter-trend approach enters long positions when bearish candles show exaggerated downside wicks relative to closing prices, then exits on bullish confirmation signals. Includes optional EMA trend filtering for improved reliability.

█ What is a Bearish Wick?
A price rejection pattern where:

• Bearish candle (close < open) forms with extended lower wick
  
• Wick represents failed selloff: Low drops significantly below close
  
• Measured as: (Low - Close)/Close × 100 (Negative percentage indicates downward extension)
  

█ SIGNAL GENERATION
1. LONG ENTRY CONDITION

• Bearish candle forms with close < open
  
• Lower wick exceeds user-defined threshold (Default: -1% of close price)
  
• The signal occurs within the specified time window
  
• If enabled, the close price must also be above the 200-period EMA (Exponential Moving Average)
  

2. EXIT CONDITION

• A Sell Signal is generated when the current closing price exceeds the highest high of the previous seven bars (`close > _highest[1]`). This indicates that the price has shown strength, potentially confirming the reversal and prompting the strategy to exit the position.
  

█ PERFORMANCE OVERVIEW

• Ideal Market: Volatile instruments with frequent price rejections
  
• Key Risk: False signals in sustained bearish trends
  
• Optimization Tip: Test various thresholds
  
• Filter Impact: EMA reduces trades but improves win rate and reduces drawdown