Three-bar reversal is a powerful pattern for day trading. The setup looks for a few consecutive red candlesticks and the final bar being a green candle closing higher than previous bars.
Here is an example:
Below is the code to identify bullish trigger bar in the Three Bar Reversal pattern. It also comes with an alert system.
If you would like to look for bearish trigger bar in this pattern, you can insert the following code into that indicator.
The script was posted on the thinkScript Lounge Archive. It did not mention who created the indicator.
Here is an example:
Below is the code to identify bullish trigger bar in the Three Bar Reversal pattern. It also comes with an alert system.
thinkScript Code
Rich (BB code):
# Three-Bar Reversal Indicator
# Found in the thinkScript Archive
# Alert added by WalkingBallista
# https://usethinkscript.com/d/187-three-bar-reversal-pattern-and-indicator-for-thinkorswim
def TBRup = close > open[1] and close[1] < close[2] and close[2] < close[3] and close[3] < close[4];
plot bullish = if TBRup then high else Double.NaN;
bullish.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_UP);
alert(bullish,"TBR Up", alert.Bar,sound.ding);
Shareable Link
https://tos.mx/pLfTyMIf you would like to look for bearish trigger bar in this pattern, you can insert the following code into that indicator.
Rich (BB code):
def TBRdown = close < open[1] and close[1] > close[2] and close[2] > close[3] and close[3] > close[4];
plot bearish = if TBRdown then low else Double.NaN;
bearish.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_DOWN);
alert(bearish,"TBR Down", alert.Bar, sound.ding);
The script was posted on the thinkScript Lounge Archive. It did not mention who created the indicator.
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