N Bar Reversal Detector
By LuxAlgoSep 4, 2024
N Bar Reversal Detector extends the three-bar reversal into a configurable N-bar engine: you choose how many candles build the setup instead of settling for three. A bullish signal forms when an initial high bar leads a run of N-1 downtrending bars and the Nth bar's high takes out that first bar's high; the bearish case mirrors it at the lows. In Enhanced mode the Nth bar must close beyond the first bar's extreme — a stricter demand in the spirit of a key reversal, where the close does the confirming.
How to Trade the N Bar Reversal Detector?
- Normal pattern: the Nth bar's extreme breaches the sequence's first bar — the earliest form of the reversal cue.
- Enhanced pattern: the Nth bar closes beyond the first bar's extreme, trading immediacy for conviction.
- Projected levels: patterns that confirm against price action draw support and resistance boundaries — reference points for entries, stops, and continuation checks.
- Trend filter: show only patterns agreeing with the prevailing trend for continuation trading, or only counter-trend ones for fading — judged by your choice of Moving Average Cloud, Supertrend, or Donchian Channel.
The Min Percentage of Required Candles input decides how many of the first N-1 candles must lean the right way before a pattern qualifies, letting you tighten or relax detection to match conditions.
N Bar Reversal Detector Settings
- Pattern Type: detect "Normal" patterns, "Enhanced" patterns, or both.
- Sequence Length: the number of candles (N) forming the pattern.
- Min Percentage of Required Candles: the share of the first N-1 candles that must align with the prior trend.
- Dynamic Support and Resistance: enables or disables the projected levels.
- Trend indicator settings: Moving Average Cloud type with fast/slow lengths, Supertrend ATR length and factor, and Donchian Channel length are each configurable.
Frequently Asked Questions
Why use N bars instead of the classic three?
Three-bar turns fire often and can bury a chart in noise; stretching the sequence demands a longer one-sided push before the break, which tends to isolate the more meaningful exhaustion points. The adjustable length lets each market and timeframe earn its own setting.
Can it confirm signals from other reversal tools?
Yes — running it beside Reversal Signals works well, since agreement between two independent reversal reads at the same level is stronger evidence than either alone.
How is the N Bar Reversal Detector priced?
It is not — the detector is one of the LuxAlgo Library's free tools, and Quant, LuxAlgo's AI, can run it for you starting right here on the page.
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