In the example above I use a short-term Moving Average (in this case, the MA9) coupled with an lower than 40 . This combination of events is relatively rare as reversal confirmations usually come when values are already higher. As unusual as this setup is, it provides buy-opportunities with much higher chances of success.
The parameters of this strategy would be:
ENTRY: lower than 40 and MA9 lower than the price
TAKE PROFIT and STOP-LOSS with a ratio of at least 2. That means that if you set up a take profit of 3%, your stop-loss shouldn’t be larger than 1.5%.
The advantage of this approach is that it has a high rate of success and allows you the flexibility of setting up the percentages of the take profit and stop-loss according to your preferences and risk appetite.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.