Falter & Reverse Up (Indicator)
Input Information
Name | Expression | Default | Description |
NumDays | Numeric | 3 | Number of days in the price extension (defined as a sharp, multiple-day move). |
MinConsolIndex | Numeric | 2.25 | This input should be in the 1-to-NumDays range; the larger the number, the more extended the price. |
FinalRangeFactor | Numeric | .75 | This factor ensures that the final day's move is good-sized. Suggested value: .75 |
AlertColor | Numeric | Yellow | Color used to display alert. |
ColorBars | Numeric | 5 | Number of bars for which the alert color will be displayed. |
ColorScheme | Numeric | 2 | 0 = no coloring; 1 = color text in cell; 2 = color cell |
Market Synopsis
A falter-and-reverse situation occurs when the price started out strong yesterday, but retracted by the end of the day, and continues the reversal today, signaling an entry opportunity as it pulls out of yesterday's range. For added punch, this indicator monitors a security for such reversal opportunities only on days immediately following each price-extension period, since the "rubber-band" pullback effect on such days can be especially powerful.
The indicator will trigger an alert the first time a security meets the reversal conditions during the day when a down-extension period meets the Setup and Trigger conditions for the Falter & Reverse Up pattern, if this happens in real time. "Price-extension" is fully user-configurable.
This indicator is designed for intraday data interval.
Plot Information
Number | Name | Default Color | Description |
Plot1 | DnExt | White | Continuous display of downward price extension status - true or BLANK - for the preceding NumDays period. Will stay constant for the entire current day. |
Plot2 | Up-setup | White | If DnExt is true, this column displays the setup status - true or false - for the Falter & Reverse Up criteria. |