Trend Reversal Alerts Strategy [Advanced]
Sep 21, 2018
The Trend Reversal Alerts Strategy [Advanced] tool identifies potential market pivots by analyzing candle body dynamics and price crossovers to generate automated trading signals. It is specifically optimized for hourly and daily timeframes, offering a more granular approach to trend reversal detection compared to its lite counterpart.
Usage
The strategy is designed to be used on higher intraday timeframes such as the 2h, 4h, and 12h, as well as daily charts. It generates long entry signals when specific price action criteria and resistance thresholds are met.
- Long Entry: Occurs when the price successfully crosses over historical candle boundaries and the calculated resistance value exceeds the user-defined "Buy Resistance".
- Exit: The strategy closes long positions when a sell signal is triggered, which involves price crossing under historical candle boundaries and the resistance value falling below the "Sell Resistance" threshold.
Details
The strategy calculates a "Resistance" metric based on the relationship between the total candle range (high-low) and the candle body (open-close). This ratio helps determine the "spirit" or strength of a price movement.
- Price Crossovers: The script uses a "Delta" multiplier to adjust the sensitivity of price interactions with previous candle tops and bottoms.
- Logic: It requires two concurrent crossover conditions (on the current and previous bar) along with the resistance filter to validate a trend reversal, aiming to filter out market noise.
Settings
- Delta: A multiplier (0.01 to 1) used to adjust the price levels for crossover detection. Lower values make the crossover conditions harder to meet.
- Buy Resistance: The minimum resistance threshold required to trigger a buy signal.
- Sell Resistance: The maximum resistance threshold required to trigger a sell signal.
FAQ
How do I access the Trend Reversal Alerts Strategy [Advanced]?
You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.
What timeframes are best for this strategy?
This advanced version is optimized for the 2h, 3h, 4h, 6h, 12h, 1d, and 4d timeframes. For weekly charts, the lite version is typically recommended.
Does this strategy include alerts?
Yes, the strategy includes built-in alert functionality for both Buy and Sell signals, configured to trigger once per bar close.
Trading & investing are risky and many will lose money in connection with trading and investing activities. All content on this site is not intended to, and should not be, construed as financial advice. Decisions to buy, sell, hold or trade in securities, commodities and other investments involve risk and are best made based on the advice of qualified financial professionals. Past performance does not guarantee future results.
Hypothetical or Simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, including, but not limited to, lack of liquidity. Simulated trading programs in general are designed with the benefit of hindsight, and are based on historical information. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.
Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.
As a provider of technical analysis tools and strategies, we do not have access to the personal trading accounts or brokerage statements of our customers. As a result, we have no reason to believe our customers perform better or worse than traders as a whole based on any content, tool, or platform feature we provide.
Charts used on this site are by TradingView in which the majority of our technical indicators are built on. TradingView® is a registered trademark of TradingView, Inc. www.TradingView.com TradingView® has no affiliation with the owner, developer, or provider of the Services described herein.
Market data is provided by CBOE, CME Group, BarChart, Massive, CoinAPI. Select U.S. equities data is provided through Massive. CBOE BZX real-time U.S. equities data is licensed from CBOE and provided through BarChart. Real-time futures data is licensed from CME Group and provided through BarChart. Select cryptocurrency data, including major coins, is provided through CoinAPI. All data is provided “as is” and should be verified independently for trading purposes.
This does not represent our full Disclaimer. Please read our full disclaimer.
© 2026 LuxAlgo Global, LLC.