Reversal Bounce
Version: v.1.0.0.0
Description
The ReversalBounce indicator is designed to identify potential market reversal points followed by a bounce to the midpoint of the bar that occurred three bars ago. It analyzes recent price action to detect specific reversal patterns and confirms the signal if, after a reversal, the price bounces to at least half the size of the bar from three bars prior.
The indicator plots:
- 1 — for a detected bullish reversal and bounce,
- -1 — for a detected bearish reversal and bounce,
- 0 — when no pattern is found.
Note: This indicator is specifically intended for use with Renko bars that include wicks, as its logic is tailored to the unique structure and price action of such charts.
This tool helps traders visually spot and react to reversal and bounce setups, which can be useful for both discretionary and automated trading strategies.