Key Reversal pattern is similar to Engulfing price action pattern and consists of three bars. Two of them are trend-following and the third (key) one should absorb the previous (second) one.
The indicator implements a simplified pattern structure:
Bullish Key Reversal – two bearish bars and one bullish bar (the third one). The third bar’s Close price exceeds High of the previous (second) bar.
Bearish Key Reversal – two bullish bars and one bearish bar (the third one). The third bar’s Close price is lower than Low of the previous (second) bar.
There are five inputs:
Trend detection period – number of bars preceding the key one
Use trend detection filter – consider bars before the key one (Yes/No)
Show alerts (Yes/No)
Send mails – send signals to an email (Yes/No)
Send push-notifications – send push notifications to a mobile device (Yes/No)
