High Probability Reversal Pattern (HPRP)

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This topic contains 5 replies, has 3 voices, and was last updated by Avatar Mohd 4 months, 3 weeks ago.

Viewing 6 posts - 1 through 6 (of 6 total)
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  • #48651
    Avatar
    Mohd
    • Topics: 11
    • Replies: 14
    • Posts: 25

    Hi,

    Suggest me a script of below setup.

    For Top ,

    1. Today’s close is lower than yesterday’s low.

    2. Yesterday’s close was higher than the high of the day before yesterday.

    3. Market has a run up prior to this event 

    For Bottom,

    1. Today’s close is higher than yesterday’s high.

    2. Yesterday’s close was lower than the low of the day before yesterday.

    3. Market has had a selloff prior to this event.HPRP

     

    #48663
    Darren
    Darren
    • Topics: 33
    • Replies: 183
    • Posts: 216

    Hi Mohd,

    The criteria for the first two rules for the top are as follows (the bottoms are the opposite). The values in the square brackets are the offsets, so [1] is the previous bar, and [2] is 2 bars ago.

    How would you mathematically define the run up for the 3rd point?

    #48695
    Avatar
    Mohd
    • Topics: 11
    • Replies: 14
    • Posts: 25

    Hi Darren,

    thanks for reply run up

     3. Market has a run up prior to this event 

    means market have run up for minimum  two or three days rally .

    #48727
    Darren
    Darren
    • Topics: 33
    • Replies: 183
    • Posts: 216

    OK so for a 2 day rally you could use the following, where the Rate of Change is positive:

    ROC(BARS=2) > 0

    or when 3 day ROC is greater that 0.5%

    ROC(BARS=3) > 0.5

    #48779
    Avatar
    Trevor R
    • Topics: 31
    • Replies: 80
    • Posts: 111

    Hi Mohd,

    An interesting approach to analysing Reversal Patterns.

    In the attached workbook I’ve used the following script for finding the desired patterns:

    // High Probability Reversal Pattern

    v1= CLOSE() < LOW()[1];

    v2 = CLOSE()[1] > HIGH()[2];

    v3 = ROC(BARS=5) > 3;

    If(v1 and v2 and v3,1,0)

    I toyed with the ROC function and found using ROC with fewer that 5 Bars and a value of less than 3 gave too many erroneous results. However, changing those parameters may give you more of what you are looking for.

    I’ve also created scripts to count Entries and the “profit” signals at 1 times Risk when  achieved following the Signal Pattern. The “Trading Plan” assumptions are:

    Risk = HIGH(0) – Low(0)

    Entry = Low(0)

    Stop Loss = HIGH(0)

    Profit Target = 1 x Risk below Entry

    1 x Risk must be achieved within 7 Bars following the Signal Bar, obviously without the Stop Loss being hit.

    Note: for simplicity no allowance has been made for an Entry Stop Offset or a Stop Loss Offset.

    I’ve added scripts and Chart Elements to count the Signal, Entries and 1R Profits.

    My chart looks like this:

    20181024 High Potential Reversal Patterns

    Cheers

    Trevor,

    The Auld Tyma at 

    Auld Tyma Data Logo 3

     

     

    Attachments:
    #48903
    Avatar
    Mohd
    • Topics: 11
    • Replies: 14
    • Posts: 25

    Hi Darren, and Trevor,

     Thanks both of you i will be vary great full to you to please give me a script of revers 

    For Bottom,

    1. Today’s close is higher than yesterday’s high.

    2. Yesterday’s close was lower than the low of the day before yesterday.

    3. Market has had a selloff prior to this event.

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