OPEN-SOURCE SCRIPT
KPAP Strategy
How This Strategy Works:
1. Trend Filter:
Uses a 50-period EMA to define the trend.
If the price is above the EMA, it's a bullish trend; below the EMA, it's a bearish trend.
Exhaustion Signals:
2. Uses the RSI to identify overbought/oversold levels (default: 70/30).
Long trades are considered when RSI is oversold, and short trades are considered when RSI is overbought.
3. Support & Resistance Zones:
Identifies key pivot points for potential reversal areas.
Long trades are triggered when the price is near support, and short trades are triggered near resistance.
4. Reversal Candlestick Patterns:
Recognizes Bullish Engulfing patterns for long trades and Bearish Engulfing patterns for short trades.
Provides confirmation for entry points.
5. Risk Management:
Implements Stop Loss and Take Profit levels based on user-defined Risk:Reward ratios.
1. Trend Filter:
Uses a 50-period EMA to define the trend.
If the price is above the EMA, it's a bullish trend; below the EMA, it's a bearish trend.
Exhaustion Signals:
2. Uses the RSI to identify overbought/oversold levels (default: 70/30).
Long trades are considered when RSI is oversold, and short trades are considered when RSI is overbought.
3. Support & Resistance Zones:
Identifies key pivot points for potential reversal areas.
Long trades are triggered when the price is near support, and short trades are triggered near resistance.
4. Reversal Candlestick Patterns:
Recognizes Bullish Engulfing patterns for long trades and Bearish Engulfing patterns for short trades.
Provides confirmation for entry points.
5. Risk Management:
Implements Stop Loss and Take Profit levels based on user-defined Risk:Reward ratios.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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