Candle Reversal

Candle Reversal is a strategy that trades EURUSD on 1-hour bars. It holds at most 1 open trade.

confirmations

candle-reversal.abx

1strategy "Candle Reversal"
2market: EURUSD
3bars: 1h
4max_open: 1
5
6confirmations reversal_long:
7pattern: hammer() or engulfing(direction: up) or pin_bar()
8oversold: rsi(close, 14) < 35
9support: low <= lowest(low, 50)[1] + atr(14) * 0.5
10require: at least 2
11
12when reversal_long.passed:
13buy risk: 1%, stop: low - atr(14) * 0.5, target: 2.5R

Watch it run · EURUSD · 1h bars

entrystoptargetexit

Sample data. Not a result. The real AlgoBarsX engine ran this exact script on made-up bars, and this replays what it drew and did. It shows no profit or loss, and it says nothing about how the script would do in a real market.

Replay of this script on 150 sample bars: 2 trades.

What this script says

Candle Reversal is a strategy that trades EURUSD on 1-hour bars. It holds at most 1 open trade.

reversal_long passes when at least 2 of these 3 conditions are true: pattern (a hammer pattern or a bullish engulfing pattern or a pin bar pattern); oversold (the 14-bar RSI is below 35); support (the low is at or below the previous bar's lowest low of the last 50 bars plus 0.5 × the 14-bar ATR).

When reversal_long passes, it buys at market, risking 1% of the balance, with a stop at the low minus 0.5 × the 14-bar ATR and with a target 2.5R from the entry.