OPEN-SOURCE SCRIPT
L1 Trend Reversal Indicator
Level: 1
Background
A trend reversal occurs when the direction of a stock (or a financial trading instrument) changes and moves back in the opposite direction. Uptrends that reverse into downtrends and downtrends that reverse into uptrends are examples of trend reversals.
Function
L1 Trend Reversal Indicator is simple but powerful. It can be used as a basic element for many complex trading system. Although L1 Trend Reversal Indicator can't hold a candle to moving averages in indicating trend reversals, it's good at showing the strength of a trend and trend cycles.
Key Signal
My favoriate trend reversal indicator with histograms
Pros and Cons
Pros:
*1. Simple but clear to see the trend reversals
*2. Use histogram to indicate sub-time-frame trend changes
Cons:
*1. No advanced trading skill is incorporated
*2. Need improvements on sideways.
Remarks
Just be simple but powerful
Readme
In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.
The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.
Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.
Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.
Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.
Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.
Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.
Background
A trend reversal occurs when the direction of a stock (or a financial trading instrument) changes and moves back in the opposite direction. Uptrends that reverse into downtrends and downtrends that reverse into uptrends are examples of trend reversals.
Function
L1 Trend Reversal Indicator is simple but powerful. It can be used as a basic element for many complex trading system. Although L1 Trend Reversal Indicator can't hold a candle to moving averages in indicating trend reversals, it's good at showing the strength of a trend and trend cycles.
Key Signal
My favoriate trend reversal indicator with histograms
Pros and Cons
Pros:
*1. Simple but clear to see the trend reversals
*2. Use histogram to indicate sub-time-frame trend changes
Cons:
*1. No advanced trading skill is incorporated
*2. Need improvements on sideways.
Remarks
Just be simple but powerful
Readme
In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.
The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.
Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.
Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.
Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.
Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.
Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.
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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Disclaimer
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