Conditions for Reversal

Streak - backtesting
1

I want conditions for stocks that have two red candles, followed by two green candles for reversal. How to write

2

To identify stocks that have two red candles, followed by two green candles for reversal, you can use the following conditions in Streak:

Close[1] > Open[1] // Previous candle is green
Close[2] < Open[2] // Candle two bars ago is red
Close[3] < Open[3] // Candle three bars ago is red
Close[0] > Open[0] // Current candle is green
Close[0] > Close[2] // Current candle closes above the close of the red candle two bars ago

These conditions will identify stocks that have formed a bullish reversal pattern, where the price has moved down from a previous high, formed two red candles, and then reversed to close higher than the close of the second red candle. This pattern suggests that there may be buying pressure coming into the stock, and it could be a potential entry point for a long position.

Here’s a breakdown of the conditions:

  • Close[1] > Open[1]: This condition checks if the previous candle is green. A green candle indicates that the closing price was higher than the opening price, suggesting upward pressure.

  • Close[2] < Open[2]: This condition checks if the candle two bars ago is red. A red candle indicates that the closing price was lower than the opening price, suggesting downward pressure.

  • Close[3] < Open[3]: This condition checks if the candle three bars ago is red. Another red candle following the first one reinforces the downward trend.

  • Close[0] > Open[0]: This condition checks if the current candle is green. A green candle after two red candles suggests a potential reversal, as the closing price is higher than the opening price.

  • Close[0] > Close[2]: This condition checks if the current candle closes above the close of the second red candle. This further confirms the reversal as the price has moved back above a recent low.

By combining these conditions, you can identify stocks that have formed this specific bullish reversal pattern, indicating a potential buying opportunity.

Disclaimer:
This information is fully given by BARD (Google).

Please do tell me if this works or not.
If not I would stop posting answers from AI Chatbots on this topic

3

Hey @TradingAndy .

A Heikin Ashi bullish reversal scanner is also there in the DIscover section of Streak. Refer to the below link to access the same-

You can select the candle type as per your requirements.