The Reversal Signal Bars indicator shows now small Inside Bars, possible One Bar Final Flags and two variants of Breakout Pullbacks.
A small Inside Bar (even with a weak close) at one end of a large bar is a setup for a fade of the large bar. At times its fine to fade a large bar off a same colored inside bar, if the entry is within the direction of the overall trend or has some other strengtheners.
The 1st target for that fade is the other end of the bar, that contains the Inside Bar.
A Final Flag (FF) signifies sudden loss of momentum, a horizontal, overlapped pattern after a trend (the last PB before a possible trend break or reversal). It can be one bar or a couple of overlapped, sideways bars. A breakout often fails and tries to reverse the trend.
The indicator shows Final Flags from Inside, Inside Outside Inside and Inside Inside Bar signals, that trigger on the “wrong” side and might act as a Final Flag. One Bar Final Flags are indicated on the prior bar (after a breakout from the possible final flag) and aren’t suitable signals for Automated Trading (with BloodHound). The 1st target for the failed breakout is the other end of the FF.
Below are a couple of examples for one bar final flags (FF):
Often there are Breakout Pullbacks after a Reversal (continuation within a trend attempt or a new trend). The Reversal Signal Bars indicator now shows also two different variations of a Breakout Pullback.
An Inside Bar after a breakout can be treated as a Breakout Pullback and can be entered with trend. Some of signals might end up being the Final Flag of a trend (see above), that’s why on some Breakout Pullbacks you will also see a signal for a Final Flag. Some of them are also small Inside Bars (see above) for a fade of the large breakout bar and can trigger in the “wrong” direction. If you want to trade both directions, they can be bracketed.
A Two Bar Breakout Pullback is another version of a breakout pullback and can be entered with trend. Counter trend traders tried to make a stand, but failed two times. Below are a couple of examples with the stop entry and a possible stop loss price marked up.
The Support and Resistance – Breakout Test indicator has now a setting to not allow a micro channel for a breakout. A micro channel is a weak kind of breakout, where the 1st bar of the breakout doesn’t have to close beyond the breakout point. The two charts below show how the setting works on a 5 min chart of the ES E-mini.
The Support and Resistance – Breakout Failure Tick indicator has now a setting to not show Breakout Tick Failures on shaved close bars. A shaved close bar is bar with a strong close (on the high for bull or on the low for bear) showing possible strength against a possible fade trade.
If you already had a trial of our indicators and want to check them out again, just drop us an email with your NinjaTrader Machine ID and we set you up for a another one.