The Champion Reversal indicator identifies potential reversals by monitoring RSI, Bollinger Bands, and number of same-colored candles.
Champion Reversal Indicator
Ideal for mean reversion trading
I would just like to ask if the eSignal indicator on this website can be done in TOS? It seems that the below criteria must meet to trigger the Arrow up/down (green/red) to show.
- I look for stocks hitting new highs or new lows
- I look for at least 5–10 consecutive 5min candles of the same color
- I look for RSI below 10 or above 90 to indicate extreme conditions
Also, would be nice if the first 5 minute candle making a new high vs previous candle (for bottom reversal) or new low (for top reversal) to change its color to yellow, to alert me to buy/sell respectively.
Please let me know. Thanks!
Yes, it can be done.
Note that I do not have eSignal; neither did I have access to the eSignal code for this indicator. My ThinkScript was reversed engineered based only on the screenshots and the written description at the link posted by the above requestor.
vs. thinkorswim version
This indicator marks potential reversals by checking the following default parameters:
- At least 5 same-colored candles in a row.
- RSI is oversold (10) for bottom reversals or overbought (90) for top reversals.
- The reversal candle opens and closes outside of the bollinger bands.
All parameters are user configurable from the script settings panel.
If you want to be more aggressive, narrow the RSI overbought/oversold range or allow the reversal candle to be inside the bollinger bands.
I also added colored entry candles and initial stop levels.
Additionally, I have written a script for the stock hacker scan tool that will find stocks which are setting up for a potential reversal according to the criteria mentioned above.
This video shows setting up the scan, running the scan, saving the results to a watchlist, and saving the scan itself so it can be reused again later. In the video, I set the scan up for searching 5 minute charts. Other time frames may be used as well by selecting a different aggregation period from the drop down list.
Note: the video does not have recorded audio.