Hook Reversal Arrow Indicator: Search for reversal on the inside bar
Hook Reversal Arrow Indicator is developed by a user of the forexsystemsru.com forum with the nickname Crossluck and is based on the search for internal bars, which are identified as the points of probable price reversal. Hook Reversal indicator is discussed in on this topic.
What is a reversal on the inside bar?
The criteria of the signal bar, in an up trend:
- The bar opening should be near the maximum
- Closing should be near the minimum of the bar
- A bar must have a lower high and a higher low than the previous bar (i.e., the bar must not be outside the range of the previous bar)
The criteria of the signal bar, in a downward trend:
- The opening should be near the minimum of the bar
- Closing should be near the maximum
- The bar must have a higher minimum and a lower maximum compared to the previous bar (i.e., the bar must not exceed the range of the previous bar).
According to the author, the Hook Reversal indicator, when properly configured, gives fairly accurate signals that do not overdraw.
If two opposite arrows appear on the same bar at once, they can be interpreted either as a warning of a change trend (if there is one), or ignore them if the previous signal was strong enough.
The fortrader.org magazine invites traders for testing, parameter selection and discussion Hook Reversal Arrow IndicatorThis will improve its efficiency and develop optimal rules for trading on it.
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