Reversal Candles in OsEngine.
In this article, we will talk about reversal candles (also known as Revers). They represent a unique technical analysis tool that allows you to identify zones of non-reversal movements during trading.
We will discuss what they are, their history, methods of application in trading, the process of setting them up in OsEngine, and where the source code for this type of candle is located, along with the basic principles of their calculation.
1. History of the Emergence of Reversal Candles.
Unlike other types of candles, this type of candle assembly does not have a captivating creation story by a mysterious Japanese or a German-American.
Reversal candles were developed as a result of the search for more reliable methods to assess market trends and reversals to observe non-reversal movements. The idea of creating these candles emerged in the early 2000s when it became evident that simple analytical models based solely on Japanese candles did not always yield accurate results.
2. Calculation of Reversal Candles.
In the settings of these candles, there are several variables. Let's take a look at them:
1. Value type – the type of the minimum candle size. Options include percentages and absolute values.
2. Min movement – the minimum candle size in units specified in the previous parameter.
3. Rollback – the pullback from the high or low after which the candle will be considered closed. Absolute values.
The overall concept is simple:
1. A candle, like in Japanese candles, has Open, High, Low, Close.
2. At the start, we have one value: Open.
3. Data begins to flow into the candle from the deal tape (or order book centers), until the size from Open to Close reaches the Min movement (from the settings).
4. Next, the algorithm waits for a pullback from the direction of the candle by the amount of Rollback (from the settings). After that, the candle is considered closed.
3. How to Trade with Reversal Candles?
Technically, it's still OHLCV. And, obviously, both candlestick patterns and indicator and breakout strategies are available on them. However, if you use this type of candle, it is essential to take advantage of their unique structure.
The uniqueness of these candles is that they do not close as long as the movement is in the direction it started from. Therefore, various algorithms can determine non-reversal movements and trends based on this characteristic.
Confirmation of trend strength. Large non-reversal candles. The first non-reversal breakout at very high volumes…
4. How to Launch Reversal Candles in OsEngine.
Open the main menu in OsEngine and go to "Bot Station Light."
Connect to the connector:
Next, create a trading robot. In this case, it will be Bollinger Revers:
Now go to the data stream connection menu for the robot:
Choose any instrument from the list.
1. Select the connection.
2. Choose the paper for trading.
3. Select the type of candles Revers.
4. Choose the type of minimum candle size. Options include percentages and absolute values.
5. Choose the minimum candle size in units specified in the previous parameter.
6. Choose the pullback from the high or low after which the candle will be considered closed. Absolute values.
After the settings, we see a chart with "Reversal Candles":
5. Where is the Source Code for Reversal Candles in OsEngine?
The code for reversal candles is publicly available on the GitHub platform.
After downloading OsEngine to your PC, you can find the source files within the project here:
Good luck with your algorithms!