v2.0—Tristan's Multi-Indicator Reversal Strategy

2 days ago

🎯 Multi-Indicator Reversal Strategy - Optimized for High Win Rates
A powerful confluence-based strategy that combines RSI, MACD, Williams %R, Bollinger Bands, and Volume analysis to identify high-probability reversal points. Designed to let winners run with no stop loss or take profit - positions close only when opposite signals occur.

Also, the 3 hour timeframe works VERY well—just a lot less trades.

📈 Proven Performance
This strategy has been backtested and optimized on multiple blue-chip stocks with 80-90%+ win rates on 1-hour timeframes from Aug 2025 through Oct 2025:
✅ V (Visa) - Payment processor
✅ MSFT (Microsoft) - Large-cap tech
✅ WMT (Walmart) - Retail leader
✅ IWM (Russell 2000 ETF) - Small-cap index
✅ NOW (ServiceNow) - Enterprise software
✅ WM (Waste Management) - Industrial services
These stocks tend to mean-revert at extremes, making them ideal candidates for this reversal-based approach. I only list these as a way to show you the performance of the script. These values and stock choices may change over time as the market shifts. Keep testing!

🔑 How to Use This Strategy Successfully
Step 1: Apply to Chart

• Open your desired stock (V, MSFT, WMT, IWM, NOW, WM recommended)
  
• Set timeframe to 1 Hour
  
• Apply this strategy
  
• Check that the Williams %R is set to -20 and -80, and "Flip All Signals" is OFF (can flip this for some stocks to perform better.)
  

Step 2: Understand the Signals
🟢 Green Triangle (BUY) Below Candle:

• Multiple indicators (RSI, Williams %R, MACD, Bollinger Bands) show oversold conditions
  
• Enter LONG position
  
• Strategy will pyramid up to 10 entries if more buy signals occur
  
• Hold until red triangle appears
  

🔴 Red Triangle (SELL) Above Candle:

• Multiple indicators show overbought conditions
  
• Enter SHORT position (or close existing long)
  
• Strategy will pyramid up to 10 entries if more sell signals occur
  
• Hold until green triangle appears
  

🟣 Purple Labels (EXIT):

• Shows when positions close
  
• Displays count if multiple entries were pyramided (e.g., "Exit Long x5")
  

Step 3: Let the Strategy Work
Key Success Principles:
✅ Be Patient - Signals don't occur every day, wait for quality setups
✅ Trust the Process - Don't manually close positions, let opposite signals exit
✅ Watch Pyramiding - The strategy can add up to 10 positions in the same direction
✅ No Stop Loss - Positions ride through drawdowns until reversal confirmed
✅ Session Filter - Only trades during NY session (9:30 AM - 4:00 PM ET)

⚙️ Winning Settings (Already Set as Defaults)
INDICATOR SETTINGS:
- RSI Length: 14
- RSI Overbought: 70
- RSI Oversold: 30
- MACD: 12, 26, 9 (standard)
- Williams %R Length: 14
- Williams %R Overbought: -20 ⭐ (check this! And adjust to your liking)
- Williams %R Oversold: -80 ⭐ (check this! And adjust to your liking)
- Bollinger Bands: 20, 2.0
- Volume MA: 20 periods
- Volume Multiplier: 1.5x

SIGNAL REQUIREMENTS:
- Min Indicators Aligned: 2
- Require Divergence: OFF
- Require Volume Spike: OFF
- Require Reversal Candle: OFF
- Flip All Signals: OFF ⭐

RISK MANAGEMENT:
- Use Stop Loss: OFF ⭐⭐⭐
- Use Take Profit: OFF ⭐⭐⭐
- Allow Pyramiding: ON ⭐⭐⭐
- Max Pyramid Entries: 10 ⭐⭐⭐

SESSION FILTER:
- Trade Only NY Session: ON
- NY Session: 9:30 AM - 4:00 PM ET

**⭐ = Critical settings for success**
## 🎓 Strategy Logic Explained

### **How It Works:**

1. **Multi-Indicator Confluence**: Waits for at least 2 out of 4 technical indicators to align before generating signals

2. **Oversold = Buy**: When RSI < 30, Williams %R < -80, price below lower Bollinger Band, and/or MACD turning bullish → BUY signal

3. **Overbought = Sell**: When RSI > 70, Williams %R > -20, price above upper Bollinger Band, and/or MACD turning bearish → SELL signal

4. **Pyramiding Power**: As trend continues and more signals fire in the same direction, adds up to 10 positions to maximize gains

5. **Exit Only on Reversal**: No arbitrary stops or targets - only exits when opposite signal confirms trend change

6. **Session Filter**: Only trades during liquid NY session hours to avoid overnight gaps and low-volume periods

### **Why No Stop Loss Works:**

Traditional reversal strategies fail because they:
- Get stopped out too early during normal volatility
- Miss the actual reversal that happens later
- Cut winners short with tight take profits

This strategy succeeds because it:
- ✅ Rides through temporary noise
- ✅ Captures full reversal moves
- ✅ Uses multiple indicators for confirmation
- ✅ Pyramids into winning positions
- ✅ Only exits when technical picture completely reverses

---

## 📊 Understanding the Display

**Live Indicator Counter (Top Corner / end of current candles):**
Bull: 2/4
Bear: 0/4
(STANDARD)

Shows how many indicators currently align bullish/bearish
"STANDARD" = normal reversal mode (buy oversold, sell overbought)
"FLIPPED" = momentum mode if you toggle that setting

Visual Indicators:
🔵 Blue background = NY session active (trading window)
🟡 Yellow candle tint = Volume spike detected
💎 Aqua diamond = Bullish divergence (price vs RSI)
💎 Fuchsia diamond = Bearish divergence

⚡ Advanced Tips
Optimizing for Different Stocks:
If Win Rate is Low (<50%):

• Try toggling "Flip All Signals" to ON (switches to momentum mode)
  
• Increase "Min Indicators Aligned" to 3 or 4
  
• Turn ON "Require Divergence"
  
• Test on different timeframe (4-hour or daily)
  

If Too Few Signals:

• Decrease "Min Indicators Aligned" to 2
  
• Turn OFF all requirement filters
  
• Widen Williams %R bands to -15 and -85
  

If Too Many False Signals:

• Increase "Min Indicators Aligned" to 3 or 4
  
• Turn ON "Require Divergence"
  
• Turn ON "Require Volume Spike"
  
• Reduce Max Pyramid Entries to 5
  

Stock Selection Guidelines:
Best Suited For:

• Large-cap stable stocks (V, MSFT, WMT)
  
• ETFs (IWM, SPY, QQQ)
  
• Stocks with clear support/resistance
  
• Mean-reverting instruments
  

Avoid:

• Ultra low-volume penny stocks
  
• Extremely volatile crypto (try traditional settings first)
  
• Stocks in strong one-directional trends lasting months
  

🔄 The "Flip All Signals" Feature
If backtesting shows poor results on a particular stock, try toggling "Flip All Signals" to ON:
STANDARD Mode (OFF):

• Buy when oversold (reversal strategy)
  
• Sell when overbought
  
• May work best for: V, MSFT, WMT, IWM, NOW, WM
  

FLIPPED Mode (ON):

• Buy when overbought (momentum strategy)
  
• Sell when oversold
  
• May work best for: Strong trending stocks, momentum plays, crypto
  

Test both modes on your stock to see which performs better!

📱 Alert Setup
Create alerts to notify you of signals:

📊 Performance Expectations
With optimized settings on recommended stocks:
Typical results we are looking for:

• Win Rate: 70-90%
  
• Average Winner: 3-5%
  
• Average Loser: 1-3%
  
• Signals Per Week: 1-3 on 1-hour timeframe
  
• Hold Time: Several hours to days
  

Remember: Past performance doesn't guarantee future results. Always use proper risk management.

17 hours ago

Release Notes

🎯 Multi-Indicator Reversal Strategy - Optimized for High Win Rates
A powerful confluence-based strategy that combines RSI, MACD, Williams %R, Bollinger Bands, and Volume analysis to identify high-probability reversal points. Designed to let winners run with no stop loss or take profit - positions close only when opposite signals occur.

Also, the 3 hour timeframe works VERY well—just a lot less trades.

UPDATED: to only send signals after candle close—no repaint of signal / visual indicator.

📈 Proven Performance
This strategy has been backtested and optimized on multiple blue-chip stocks with 80-90%+ win rates on 1-hour timeframes from Aug 2025 through Oct 2025:
✅ V (Visa) - Payment processor
✅ MSFT (Microsoft) - Large-cap tech
✅ WMT (Walmart) - Retail leader
✅ IWM (Russell 2000 ETF) - Small-cap index
✅ NOW (ServiceNow) - Enterprise software
✅ WM (Waste Management) - Industrial services
These stocks tend to mean-revert at extremes, making them ideal candidates for this reversal-based approach. I only list these as a way to show you the performance of the script. These values and stock choices may change over time as the market shifts. Keep testing!

🔑 How to Use This Strategy Successfully
Step 1: Apply to Chart

• Open your desired stock (V, MSFT, WMT, IWM, NOW, WM recommended)
  
• Set timeframe to 1 Hour
  
• Apply this strategy
  
• Check that the Williams %R is set to -20 and -80, and "Flip All Signals" is OFF (can flip this for some stocks to perform better.)
  

Step 2: Understand the Signals
🟢 Green Triangle (BUY) Below Candle:

• Multiple indicators (RSI, Williams %R, MACD, Bollinger Bands) show oversold conditions
  
• Enter LONG position
  
• Strategy will pyramid up to 10 entries if more buy signals occur
  
• Hold until red triangle appears
  

🔴 Red Triangle (SELL) Above Candle:

• Multiple indicators show overbought conditions
  
• Enter SHORT position (or close existing long)
  
• Strategy will pyramid up to 10 entries if more sell signals occur
  
• Hold until green triangle appears
  

🟣 Purple Labels (EXIT):

• Shows when positions close
  
• Displays count if multiple entries were pyramided (e.g., "Exit Long x5")
  

Step 3: Let the Strategy Work
Key Success Principles:
✅ Be Patient - Signals don't occur every day, wait for quality setups
✅ Trust the Process - Don't manually close positions, let opposite signals exit
✅ Watch Pyramiding - The strategy can add up to 10 positions in the same direction
✅ No Stop Loss - Positions ride through drawdowns until reversal confirmed
✅ Session Filter - Only trades during NY session (9:30 AM - 4:00 PM ET)

⚙️ Winning Settings (Already Set as Defaults)
INDICATOR SETTINGS:
- RSI Length: 14
- RSI Overbought: 70
- RSI Oversold: 30
- MACD: 12, 26, 9 (standard)
- Williams %R Length: 14
- Williams %R Overbought: -20 ⭐ (check this! And adjust to your liking)
- Williams %R Oversold: -80 ⭐ (check this! And adjust to your liking)
- Bollinger Bands: 20, 2.0
- Volume MA: 20 periods
- Volume Multiplier: 1.5x

SIGNAL REQUIREMENTS:
- Min Indicators Aligned: 2
- Require Divergence: OFF
- Require Volume Spike: OFF
- Require Reversal Candle: OFF
- Flip All Signals: OFF ⭐

## 🎓 Strategy Logic Explained
### **How It Works:**

1. **Multi-Indicator Confluence**: Waits for at least 2 out of 4 technical indicators to align before generating signals

2. **Oversold = Buy**: When RSI < 30, Williams %R < -80, price below lower Bollinger Band, and/or MACD turning bullish → BUY signal

3. **Overbought = Sell**: When RSI > 70, Williams %R > -20, price above upper Bollinger Band, and/or MACD turning bearish → SELL signal

4. **Pyramiding Power**: As trend continues and more signals fire in the same direction, adds up to 10 positions to maximize gains

5. **Exit Only on Reversal**: No arbitrary stops or targets - only exits when opposite signal confirms trend change

6. **Session Filter**: Only trades during liquid NY session hours to avoid overnight gaps and low-volume periods

This strategy succeeds because it:
- ✅ Rides through temporary noise
- ✅ Captures full reversal moves
- ✅ Uses multiple indicators for confirmation
- ✅ Pyramids into winning positions
- ✅ Only exits when technical picture completely reverses

## 📊 Understanding the Display
**Live Indicator Counter (Top Corner / end of current candles):**
Bull: 2/4
Bear: 0/4
(STANDARD)

Shows how many indicators currently align bullish/bearish
"STANDARD" = normal reversal mode (buy oversold, sell overbought)
"FLIPPED" = momentum mode if you toggle that setting

Visual Indicators:
🔵 Blue background = NY session active (trading window)
🟡 Yellow candle tint = Volume spike detected
💎 Aqua diamond = Bullish divergence (price vs RSI)
💎 Fuchsia diamond = Bearish divergence

⚡ Advanced Tips
Optimizing for Different Stocks:

• If Win Rate is Low (<50%):
  
• Try toggling "Flip All Signals" to ON (switches to momentum mode)
  
• Increase "Min Indicators Aligned" to 3 or 4
  
• Turn ON "Require Divergence"
  
• Test on different timeframe (4-hour or daily)
  

If Too Few Signals:

• Decrease "Min Indicators Aligned" to 2
  
• Turn OFF all requirement filters
  
• Widen Williams %R bands to -15 and -85
  

If Too Many False Signals:

• Increase "Min Indicators Aligned" to 3 or 4
  
• Turn ON "Require Divergence"
  
• Turn ON "Require Volume Spike"
  
• Reduce Max Pyramid Entries to 5
  

Stock Selection Guidelines—Best Suited For:

• Large-cap stable stocks (V, MSFT, WMT)
  
• ETFs (IWM, SPY, QQQ)
  
• Stocks with clear support/resistance
  
• Mean-reverting instruments
  

Avoid:
Ultra low-volume penny stocks
Extremely volatile crypto (try traditional settings first)
Stocks in strong one-directional trends lasting months

🔄 The "Flip All Signals" Feature

• If backtesting shows poor results on a particular stock, try toggling "Flip All Signals" to ON:
  
• STANDARD Mode (OFF):
  
• Buy when oversold (reversal strategy)
  
• Sell when overbought
  
• May work best for: V, MSFT, WMT, IWM, NOW, WM
  

FLIPPED Mode (ON):

• Buy when overbought (momentum strategy)
  
• Sell when oversold
  
• May work best for: Strong trending stocks, momentum plays, crypto
  

Test both modes on your stock to see which performs better!
-------------
Remember: Past performance doesn't guarantee future results. Always use proper risk management.

17 hours ago

Release Notes

Republished to ensure there is no repaint so that your entries are not spurious and don't happen in the middle of a moving candle.