PROTECTED SOURCE SCRIPT
Special Red & Green Candles
Core Concept
The strategy identifies potential reversal points by looking for candles that show strong rejection (engulfing behavior) at key technical levels across multiple timeframes, combined with specific Fibonacci and volatility conditions.
Key Components
Multi-Timeframe Pivot System
Calculates Daily, Weekly, and Monthly pivot points (Standard & CPR methods)
Tracks traditional pivots (PP, R1-R4, S1-S4) and Central Pivot Range (CPR) values
Includes VWAPs (VWAP, 50-period, 250-period SMAs)
Dynamic Volatility Filter
Uses timeframe-based multipliers to adapt to different chart resolutions:
dynamicMultiplier: Defines minimum candle size requirement (0.015%-0.4% of close)
dynamicMultiplierS: Defines maximum candle size filter (0.025%-0.55% of close)
Special Candle Conditions
For Special Red Candles (Bearish Reversal):
Red candle (close < open)
Open below at least one pivot point (any timeframe)
High touches at least one pivot point
Close below 38.2% Fibonacci level of candle range
Current high is 5-bar highest but low isn't 8-bar lowest
Meets volatility conditions (absolute gap > 0.7% of close)
For Special Green Candles (Bullish Reversal):
Green candle (close > open)
Open above at least one pivot point
Low touches at least one pivot point
Close above 61.8% Fibonacci level
Current low is 5-bar lowest but high isn't 8-bar highest
Meets same volatility requirement
Additional Features
Gap Analysis Table: Shows relationships between key daily/weekly levels
Visual Indicators: Colors background, plots labels, and Fibonacci levels
Comprehensive Level Tracking: Monitors 30+ different pivot points across all timeframes
Trading Logic
This is essentially a fade-the-extreme-move strategy that identifies:
Candles that have significant range (volatility filter)
That show clear rejection at important technical levels
Across multiple timeframes simultaneously
With Fibonacci confluence for additional confirmation
Potential Use Cases
Swing Trading: Identifying reversal points in larger moves
Day Trading: Using lower timeframe signals for intraday reversals
Position Sizing: The strength of confluence could determine trade size
Risk Management
The strategy includes inherent risk controls through:
Multiple confirmation requirements (reduces false signals)
Volatility filters (avoids choppy market conditions)
Multi-timeframe confluence (increases signal reliability)
This is a sophisticated institutional-grade approach that combines traditional pivot analysis with modern volatility-based filtering and Fibonacci theory.
The strategy identifies potential reversal points by looking for candles that show strong rejection (engulfing behavior) at key technical levels across multiple timeframes, combined with specific Fibonacci and volatility conditions.
Key Components
Multi-Timeframe Pivot System
Calculates Daily, Weekly, and Monthly pivot points (Standard & CPR methods)
Tracks traditional pivots (PP, R1-R4, S1-S4) and Central Pivot Range (CPR) values
Includes VWAPs (VWAP, 50-period, 250-period SMAs)
Dynamic Volatility Filter
Uses timeframe-based multipliers to adapt to different chart resolutions:
dynamicMultiplier: Defines minimum candle size requirement (0.015%-0.4% of close)
dynamicMultiplierS: Defines maximum candle size filter (0.025%-0.55% of close)
Special Candle Conditions
For Special Red Candles (Bearish Reversal):
Red candle (close < open)
Open below at least one pivot point (any timeframe)
High touches at least one pivot point
Close below 38.2% Fibonacci level of candle range
Current high is 5-bar highest but low isn't 8-bar lowest
Meets volatility conditions (absolute gap > 0.7% of close)
For Special Green Candles (Bullish Reversal):
Green candle (close > open)
Open above at least one pivot point
Low touches at least one pivot point
Close above 61.8% Fibonacci level
Current low is 5-bar lowest but high isn't 8-bar highest
Meets same volatility requirement
Additional Features
Gap Analysis Table: Shows relationships between key daily/weekly levels
Visual Indicators: Colors background, plots labels, and Fibonacci levels
Comprehensive Level Tracking: Monitors 30+ different pivot points across all timeframes
Trading Logic
This is essentially a fade-the-extreme-move strategy that identifies:
Candles that have significant range (volatility filter)
That show clear rejection at important technical levels
Across multiple timeframes simultaneously
With Fibonacci confluence for additional confirmation
Potential Use Cases
Swing Trading: Identifying reversal points in larger moves
Day Trading: Using lower timeframe signals for intraday reversals
Position Sizing: The strength of confluence could determine trade size
Risk Management
The strategy includes inherent risk controls through:
Multiple confirmation requirements (reduces false signals)
Volatility filters (avoids choppy market conditions)
Multi-timeframe confluence (increases signal reliability)
This is a sophisticated institutional-grade approach that combines traditional pivot analysis with modern volatility-based filtering and Fibonacci theory.
Protected script
This script is published as closed-source. However, you can use it freely and without any limitations – learn more here.
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.
Protected script
This script is published as closed-source. However, you can use it freely and without any limitations – learn more here.
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.