This pattern-based strategy scans for two consecutive lows at roughly the same price separated by a set distance. After the second bottom forms, a bullish candle confirms the reversal.
When confirmation occurs, the system buys with a stop below the pattern lows. The setup aims to capture sharp rebounds from exhausted selling.
Exits rely on a predefined stop-loss or manual profit targets.
- Entry Criteria: Two bottoms form within SimilarityPercent after Distance bars.
- Long/Short: Long only.
- Exit Criteria: Price fails or stop-loss.
- Stops: Yes.
- Default Values:
- Distance = 5
- SimilarityPercent = 2.0m
- CandleType = TimeSpan.FromMinutes(15)
- StopLossPercent = 1.0m
- Filters:
- Category: Pattern
- Direction: Long
- Indicators: Price Action
- Stops: Yes
- Complexity: Intermediate
- Timeframe: Intraday
- Seasonality: No
- Neural Networks: No
- Divergence: Yes
- Risk Level: Medium