OPEN-SOURCE SCRIPT
Fake-Out Indicator
The signal comes from the "RailRoad" candlestick pattern breaking a support/resistance level, which typically indicates price will respect that level.
How consistent is the pattern? Hard to say considering candlestick patterns vary wildly by % change between different securities.
I didn't implement any kind of "fuzzy logic" for this strategy, though it would benefit greatly from it.
There are many instances where a fixed% simply doesn't catch a winning trade from a "bounce" off a S/R level.
How consistent is the pattern? Hard to say considering candlestick patterns vary wildly by % change between different securities.
I didn't implement any kind of "fuzzy logic" for this strategy, though it would benefit greatly from it.
There are many instances where a fixed% simply doesn't catch a winning trade from a "bounce" off a S/R level.
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