This indicator combines Bollinger Bands and candlestick patterns to find reversal trading setups, whenever a setup formed it shows a dot and triggers an alert.
Price tends to come back to mean whenever it moved away from mean and based on this theory traders develop mean reversion trading strategies by using all sorts of data, from technical indicators to fundamental and Bollinger Bands is one of the most used trading indicators for mean reversion trading.
Reversal Magic consider the price far away from mean whenever price crossed either top or bottom band of Bollinger Bands indicator, and when price crossed a band it waits for a candlestick pattern to form in favor of reversal direction, after completion of candlestick patterns Reversal Magic plots a dot either on top of last closed bar or bottom of it based on signal type.
- Popup, sound and email alert
- Fully encapsulation of technical detail on the backend
- Simplifies reversal trading by just showing buy/sell dots
- Filters consolidation by trading only after a swing high or low (trending condition)
- Enable/disable candlestick patterns used by the indicator
- Supports engulfing, rejection, inside bar and three bar reversal candlestick patterns
- No repaint or lag