Reversal Detection
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Last updated
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The Reversal Detection feature identifies potential trend reversals by analyzing market conditions through machine learning algorithms. It utilizes probability-based coloring to indicate the strength and confidence level of the detected reversal.
Reversals are displayed as triangles on the oscillator:
Low Visibility (More Transparent): Indicates low confidence in the reversal.
High Visibility (Less Transparent): Indicates high confidence in the reversal.
This feature enables traders to anticipate market turning points before they occur, reducing false signals and improving entry and exit timing.
The Reversal Detection settings allow users to customize how reversal signals are displayed and filtered.
Reversal Detection (Toggle ON/OFF)
Enables or disables the detection of reversal signals.
Reversal Filter (User Input: 1-10)
Filters out low-probability reversals. A higher value results in fewer but more reliable signals, while a lower value provides more frequent signals with varying probabilities.
Enable Reversal Detection for Early Trend Identification:
Use this feature to catch trend reversals early and refine entry/exit strategies.
Adjust the Reversal Filter Based on Market Conditions:
Lower values (1-5): Ideal for strong trending markets, where filtering weak reversals is crucial.
Higher values (5-10): Suitable for high-volatility markets where reversals happen frequently.
Combine with Other Indicators for Confirmation:
Pair Reversal Detection with Trend AI to verify whether a detected reversal aligns with the overall market trend.
Use Transparency Levels to Gauge Confidence:
More transparent signals indicate lower probability, while more opaque signals suggest high confidence in a reversal.
