OPEN-SOURCE SCRIPT
3-Bar Compression Reversal Pattern
//version=5
indicator("3-Bar Compression Reversal Pattern", overlay=true)
// Get candle OHLCs
open1 = open[2]
close1 = close[2]
body1 = math.abs(close1 - open1)
open2 = open[1]
close2 = close[1]
body2 = math.abs(close2 - open2)
// 2nd candle body < 50% of 1st
secondSmall = body2 < (0.5 * body1)
// 3rd candle engulfs both 1st and 2nd
lowAll = math.min(low[2], low[1])
highAll = math.max(high[2], high[1])
engulfAll = (high > highAll) and (low < lowAll)
// Final condition
patternDetected = secondSmall and engulfAll
// Plot signal
plotshape(patternDetected, location=location.belowbar, color=color.green, style=shape.labelup, size=size.small, title="Pattern Signal")
alertcondition(patternDetected, title="3-Bar Reversal Alert", message="3-Bar Compression Reversal Pattern Detected!")
indicator("3-Bar Compression Reversal Pattern", overlay=true)
// Get candle OHLCs
open1 = open[2]
close1 = close[2]
body1 = math.abs(close1 - open1)
open2 = open[1]
close2 = close[1]
body2 = math.abs(close2 - open2)
// 2nd candle body < 50% of 1st
secondSmall = body2 < (0.5 * body1)
// 3rd candle engulfs both 1st and 2nd
lowAll = math.min(low[2], low[1])
highAll = math.max(high[2], high[1])
engulfAll = (high > highAll) and (low < lowAll)
// Final condition
patternDetected = secondSmall and engulfAll
// Plot signal
plotshape(patternDetected, location=location.belowbar, color=color.green, style=shape.labelup, size=size.small, title="Pattern Signal")
alertcondition(patternDetected, title="3-Bar Reversal Alert", message="3-Bar Compression Reversal Pattern Detected!")
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.