A TradingView Pine Script indicator that identifies bearish 3-bar reversal patterns, calculating and displaying the percentage difference between current low and previous high.
Explore complementary indicator rolesHow it works
The indicator analyzes three consecutive price bars to detect a specific bearish reversal pattern. It first checks if the previous bar's high is higher than the bar before it, and then confirms if the current bar's high is lower than the previous bar's high.
When these conditions are met, the script calculates the percentage difference between the current low and the previous high. This calculation provides traders with a precise measurement of the potential price movement and reversal strength.
Why it may be useful
Bearish reversal patterns help traders identify potential trend changes and opportunities to enter short positions. By quantifying the percentage difference between price levels, traders gain insights into the magnitude of potential price movement.
The visual label and alert system enable quick identification of trading opportunities, allowing traders to make informed decisions about potential trend reversals and market sentiment shifts.
When to explore it
This signal works best in volatile markets with clear price action and defined trend structures. Traders should use it in conjunction with other technical analysis tools to confirm potential reversal signals and reduce false positives.
The indicator is particularly useful for short-term traders looking to capitalize on quick trend changes and momentum shifts in various financial markets, including stocks, forex, and cryptocurrencies.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
