CRT Reversal PRO@Saheemol + SuperTrend Filter

The CRT Reversal PRO@Saheemol + SuperTrend Filter indicator identifies high-probability price action reversals by detecting Mother-Daughter candle liquidity sweeps confirmed by trend direction.

Usage

The Usage section describes how the script identifies trade setups and how the integrated filters refine the output.

Bullish Reversal Setup

A bullish signal is generated when the following sequence occurs:

1. A valid "Mother Candle" is identified based on the body strength requirement.
2. The "Daughter Candle" sweeps below the Mother Candle's low but closes back within the Mother Candle's range.
3. Price subsequently breaks above the Mother Candle's high.
4. The SuperTrend indicator confirms a bullish trend.

Bearish Reversal Setup

A bearish signal is generated when the following sequence occurs:

1. A valid "Mother Candle" is identified.
2. The "Daughter Candle" sweeps above the Mother Candle's high but closes back within the Mother Candle's range.
3. Price subsequently breaks below the Mother Candle's low.
4. The SuperTrend indicator confirms a bearish trend.

Exit and Risk Management

The tool automatically plots entry levels, stop losses (based on Daughter Candle extremes), and two Take Profit (TP) targets. Users can adjust the Risk:Reward ratios for TP1 and TP2 to align with their specific trading strategy.

Details

The indicator relies on the concept of liquidity sweeps within a Mother-Daughter candle formation. The Mother Candle represents a defined range, and the Daughter Candle represents a failed breakout or "stop run" that traps traders before price moves in the opposite direction.

To ensure higher quality setups, the script includes a Minimum Mother Body Ratio (%) filter. This requires the Mother Candle's body to occupy a specific percentage of its total range, filtering out indecisive doji-like candles. Furthermore, the SuperTrend integration acts as a macro-trend filter, ensuring that reversal signals are only taken when they align with the prevailing trend momentum. The script also provides 9 EMA and 21 EMA plots for additional trend context and dynamic support/resistance analysis.

Settings

Moving Averages

• EMA 9 Length: Sets the period for the fast Exponential Moving Average.
• EMA 21 Length: Sets the period for the slow Exponential Moving Average.
• EMA Colors: Customizes the visual color for both EMA lines.

SuperTrend Filter

• SuperTrend ATR Period: The lookback period for the Average True Range used in SuperTrend calculations.
• SuperTrend Factor: The multiplier applied to the ATR to determine the trend sensitivity.

Candle Requirements

• Minimum Mother Body Ratio (%): The minimum percentage of the Mother Candle's total range that must be comprised of the candle body.

Risk Management

• TP1/TP2 Risk Reward: Sets the multiplier for target levels relative to the initial risk (Entry to SL distance).

Visuals

• Line Lengths/Widths: Adjusts the horizontal length and thickness of Entry, SL, and TP lines.
• Line Styles: Choose between Solid, Dashed, or Dotted lines for different levels.
• Show Labels: Toggles the visibility of "BUY," "SELL," and price level labels on the chart.

FAQ

What is a Mother-Daughter candle setup?

It is a price action formation where a primary candle (Mother) is followed by a candle (Daughter) that sweeps the Mother's liquidity (high or low) and closes back within the range, signaling a potential reversal.

How does the SuperTrend filter affect the signals?

The SuperTrend filter restricts the indicator to only show bullish reversals during uptrends and bearish reversals during downtrends, reducing the frequency of counter-trend signals.

How can I access the CRT Reversal PRO@Saheemol + SuperTrend Filter?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.