A TradingView Pine Script indicator that identifies bullish 3-bar reversal patterns and calculates the percentage difference between the current high and previous low.
Explore complementary indicator rolesHow it works
The indicator scans price bars to detect a specific bullish reversal pattern by comparing the low prices of three consecutive bars. It first checks if the previous bar's low is lower than the bar before it, and then confirms the pattern when the current bar's low is higher than the previous bar's low.
When this precise three-bar condition is met, the script triggers a visual alert by creating a label on the chart. The label includes a calculated percentage difference between the current high price and the previous low price, providing traders with a quantitative measure of the potential price movement.
Why it may be useful
This pattern recognition tool helps traders identify potential trend reversals quickly and objectively by removing emotional decision-making from the trading process. By providing a clear visual signal and percentage calculation, it offers traders a systematic approach to spotting bullish momentum shifts in price action.
The percentage difference calculation adds an extra layer of insight by quantifying the potential price range of the reversal. This numeric context helps traders assess the significance of the pattern and make more informed decisions about potential entry and exit points.
When to explore it
The bullish 3-bar reversal pattern works best in volatile markets with clear price swings and potential trend changes. Traders should use this indicator in timeframes that capture meaningful price movements, such as intraday or short-term charts where quick trend reversals are more likely to occur.
Ideal application includes periods of market uncertainty, consolidation, or when price action suggests a potential momentum shift. Traders should combine this signal with other technical indicators and confirm the pattern with additional price action or volume confirmation for more reliable trading decisions.
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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.
