Three Bar Reversal

Jun 12

This script was written to make it easier to discover three bar reversal patterns.

A three bar reversal occurs when these conditions are met:

Long Setup (Reversal Up)

1. Bar 1 closes down
2. Low of Bar 2 is below the low of Bar 1 and Bar 3
3. Bar 3 closes above the high of both Bar 1 and Bar 2

Short Setup (Reversal Down)

1. Bar 1 closes up
2. High of Bar 2 is above the high of Bar 1 and Bar 3
3. Bar 3 closes below the low of both Bar 1 and Bar 2

When this indicator is added to your chart, you will see "Reversal Up" or "Reversal Down" when one of the above conditions are met.

It is recommended to use the 1 minute time frame for short scalps and 5 minute time frame for longer held day trade positions.

This indicator also has an alert option.
To enable an alert:

1. Create a new alert
2. Set condition "Reversal" and "Any alert() function call"
3. Give the alert a unique name

It is good to have an alert for different tickers and different time frames!
When the alert is triggered, you will receive a message:
Reversal up on: ticker-ID-here
or
Reversal down on: ticker-ID-here

Never miss a trade setup again!

Jun 13

Release Notes

Fixed alert message to display ticker name.

Jun 13

Release Notes

Updated chart image to clean chart.

Jul 8

Release Notes

Added 9 EMA and 21 EMA for trend confirmation. This will reduce false signals and ensure that signals are going with the trend. Reversal up now required 9 EMA to be above the 21 EMA and reversal down requires the 9 EMA to be below the 21 EMA.