A one-day chart pattern where prices sharply reverse during a trend. In an uptrend, prices open to new highs and then close below the previous day's closing price. In a downtrend, prices open lower and then close higher. The wider the price range on the key reversal day and the heavier the volume, the greater the odds that a reversal is taking place.
thinkScript Code
Code:
# Key Reversals
# Assembled By BenTen at useThinkScript.com
# Converted from source #1 https://www.tradingview.com/script/gv7Qop70-Key-Reversal-Down/
# Converted from source #2 https://www.tradingview.com/script/i3zsd4ZG-Key-Reversal-Up/
input nLength = 1;
def xLL = lowest(low[1], nLength);
def xHH = highest(high[1], nLength);
def C1 = (low < xLL and close > close[1]);
def C2 = (high > xHH and close < close[1]);
# Highlight Candles
assignPriceColor(if C1 then color.green else if C2 then color.red else color.white);
# Plot Signals
plot bullish = C1;
bullish.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_UP);
bullish.SetDefaultColor(Color.CYAN);
bullish.SetLineWeight(1);
plot bearish = C2;
bearish.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_DOWN);
bearish.SetDefaultColor(Color.CYAN);
bearish.SetLineWeight(1);