This original script was created based on a suggestion from @kerpiciwuasile. My original Reversal Points script was removed because I modeled it after an indicator by Demark, but this script will have no such issues. Reversal points are an exciting concept for me because it is such a useful tool when placing trades. This is my first attempt at a new overall layout for my script and I included a bunch of customization so let me know what you think.
My script works by finding lows that are surrounded by bars that have higher lows and highs that are surrounded by lower highs. I use this logic to find short term lows or highs and I use the same concept to find mid-term lows or highs but a mid-term high is a short term high surrounded by lower short term highs and a mid-term low is a short term low surrounded by higher short term lows. And of course this means that long term highs or lows use the same logic to find highs or lows that are surrounded by mid-term highs or lows. I would recommend to buy at the long term low points or sell at the long term high points.
Keep in mind of course that short term highs and lows are very common and reversal points will get rarer as you look for longer term reversal points. I would recommend to experiment and see which reversal points work best for you and of course, know that there is no magical formula to use for all stocks.
Also there are a few scenarios where you want to enable or disable the inside bar setting. You would want to ignore inside bars if the market is currently very volatile or if you are using this indicator on a crypto chart. This is not an exact science but more of a recommendation, so feel free to experiment with it.
Reversal points are crucial for traders as they signal a potential change in the market trend, providing opportunities for entry or exit.
In summary, this code snippet is a powerful tool for traders to detect and visualize reversal points on a trading chart, providing valuable insights into potential trend changes and facilitating more informed trading decisions.
Let me know if you would like me to publish other scripts or if you want me to do something custom for you!
Note di rilascio
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Added alert conditions for all reversal point types
A very good indicator, but when using cryptocurrency activities, there will be a problem of reporting errors and not displaying large cycles such as daily charts or three-day charts. How to improve it?Thanks！
xiaokeai1226
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Hi, friend. Your indicator is great. Could you please add alerts to it?
cheatcountry
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@lzh997521, Yes I will do an update later today and I will add alerts to this script and my other reversal points script since I forgot to add them in both
cheatcountry
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@lzh997521, Sorry it took me longer than I anticipated but I updated this script and my other reversal points script to add alerts for both
manishverma83
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Why does these reversal alert appear after a few candles have been made??
cheatcountry
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@manishverma83, This is a unique indicator with how it calculates the reversal points and will need some future bars in order to find mid to long term reversal points. If you are super concerned with repainting then just use the short term reversal points which don't repaint by default
MoniqueRenee129
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@cheatcountry, How many future bars does it use to find mid and how many for long?
cheatcountry
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@MoniqueRenee129, It really depends on the stock itself. It needs a minimum of 3 bars for each reversal point type
criptovida
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Great job, are you able to customize it with alerts and change the arrows into custom text ? If yes how much would you charge ?
cheatcountry
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@criptovida, Thank you and yes please send me a pm about this