This startegy based on 3-day pattern reversal described in "Are Three-Bar
Patterns Reliable For Stocks" article by Thomas Bulkowski, presented in
January,2000 issue of Stocks&Commodities magazine.
That pattern conforms to the following rules:
- It uses daily prices, not intraday or weekly prices;
- The middle day of the three-day pattern has the lowest low of the three days, with no ties allowed;
- The last day must have a close above the prior day's high, with no ties allowed;
- Each day must have a nonzero trading range.
Patterns Reliable For Stocks" article by Thomas Bulkowski, presented in
January,2000 issue of Stocks&Commodities magazine.
That pattern conforms to the following rules:
- It uses daily prices, not intraday or weekly prices;
- The middle day of the three-day pattern has the lowest low of the three days, with no ties allowed;
- The last day must have a close above the prior day's high, with no ties allowed;
- Each day must have a nonzero trading range.
//////////////////////////////////////////////////////////// // Copyright by HPotter v1.0 24/06/2014 // This startegy based on 3-day pattern reversal described in "Are Three-Bar // Patterns Reliable For Stocks" article by Thomas Bulkowski, presented in // January,2000 issue of Stocks&Commodities magazine. // That pattern conforms to the following rules: // - It uses daily prices, not intraday or weekly prices; // - The middle day of the three-day pattern has the lowest low of the three days, with no ties allowed; // - The last day must have a close above the prior day's high, with no ties allowed; // - Each day must have a nonzero trading range. //////////////////////////////////////////////////////////// study(title="3-Bar-Reversal-Pattern Strategy", shorttitle="3-Bar-Reversal-Pattern Strategy", overlay = true) pos = iff(open[2] > close[2] and high[1] < high[2] and low[1] < low[2] and low[0] > low[1] and high[0] > high[1], 1, iff(open[2] < close[2] and high[1] > high[2] and low[1] > low[2] and high[0] < high[1] and low[0] < low[1], -1, nz(pos[1], 0))) barcolor(pos == -1 ? red: pos == 1 ? green : blue )