Three Bar Reversal Pattern and Indicator for ThinkorSwim

[spencepuppy]

@spencepuppy Morning Start Doji is already available in ThinkorSwim: https://tlc.thinkorswim.com/center/...patterns-library/bullish-only/MorningDojiStar

This is not an indicator though. I was wondering if there was an indicator that highlighted/colors or puts an "arrow" on morning stars. Thanks

 

[BenTen]

@spencepuppy You can find it under the Patterns list. It will plot up arrows on every morning doji star candlestick.

 

[dreday70]

@LynnChen Try this:

# Generation time: 2020-08-05T22:36:03.729Z

def IsUp = close > open;
def IsDown = close < open;
def IsDoji = IsDoji();
def avgRange = 0.05 * Average(high - low, 20);
plot PatternPlot =
    IsDown[3] and
    IsDown[2] and
    IsDown[1] and
    IsUp[0] and
    high[1] < close[0];

PatternPlot.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_UP);
PatternPlot.SetDefaultColor(GetColor(0));

Ben, can you add an alert to this please?

 

[BenTen]

@dreday70

Alert(PatternPlot, " ", Alert.Bar, Sound.Chimes);

 

[dreday70]

Alert(PatternPlot, " ", Alert.Bar, Sound.Chimes);

Thank you!

 

[arv06]

Does this make sense for 3 bar down (bearish) indicator?

# 3 Bar Down
def PatternPlotDown =
    IsUp[3] and
    IsUp[2] and
    IsUp[1] and
    IsDown[0] and
    low[1] > close[0];

plot arrowDown = arrows and PatternPlotDown;

arrowDown.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_DOWN);
arrowDown.SetDefaultColor(GetColor(0));

 

[BenTen]

@arv06 Haven't checked but you can try to build it using the Candlestick Pattern Editor in TOS, much easier.

 

[arv06]

@arv06 Haven't checked but you can try to build it using the Candlestick Pattern Editor in TOS, much easier.

Thanks. Didn't know about it, learnt something new today.

 

[antwerks]

@LynnChen So the last green candle closing higher than the high of the previous candle?

I don't think so the middle candle is the highest usually counting the wick, this is a fractal candle indicator for reversals. The Fibonacci Indicator with Fractals is one of the scripts that Sam4Cok@Samer800 transcribed uses the same candle pattern

 

[johnwood34]

The three bar reversal pattern is a significant signal in technical analysis, often used by traders to identify potential trend reversals. It typically consists of three consecutive bars on a price chart, indicating a shift from a prevailing trend to a new direction. This pattern is characterized by the first bar representing the current trend, followed by a second bar indicating a potential reversal, and finally confirmed by the third bar, which typically closes beyond the high or low of the first bar, signaling a reversal. Traders often use this pattern to make informed decisions about entering or exiting positions in the market.

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:

View attachment 4554

Below is the code to identify bullish trigger bar in the Three Bar Reversal pattern. It also comes with an alert system.

thinkScript 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/pLfTyM

If you would like to look for bearish trigger bar in this pattern, you can insert the following code into that indicator.

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 indicIf

Can this be tweaked to trigger a signal if it takes more than three candles to close over/under the first? Say, the third candle doesn't close above the first. Can it be tweaked to trigger on the first candle that does?