The first time a HIGH that is above the HIGH has a lower HIGH but it still above the HIGH, a (-) will appear at the bottom. This signals an aggressive entry point for potential coming downtrend. The second time the HIGH produces a lower high but is still above the HIGH, a (S) will appear at the bottom which signals a more conservative entry point for potential coming downtrend. All of the opposite information is true of reversals beyond the LOW.
When these reversals appear the same time the is overbought or oversold, a red bar (overbought and potentially coming down) or a green bar (oversold and potentially coming up) will appear. NOTE: Aggressive symbols occur more often and will always occur when a conservative symbol appears. When a conservative indicator and respective overbought/oversold level occur at the same time, the bar is darker in color.
You can enter positions at any one of the indicators, however, the darker bars are what I look for. This has a high success rate but cannot guarantee results every time. I recommend adjusting the , and parameters as well as time periods. I have had success with this indicator while day trading the 5, 10, 15, 30, 65 minute periods as well as daily and weekly periods. Every symbol traded can provide differing results based on the parameters used.
Please feel free to leave feedback and I know this can work well for you!
//Created by Chris Guthrie on September 14, 2016 //Combines my Range_Outlier_Action indicator with Stoch Overbought/Oversold Levels. A Solid Bar appears when both indicators hit. Red=Sell, Green=Buy study(title="Stoch+CGOutlier_3x_Confirm", shorttitle="Stoch_Out_Triple_Confirm") length = input(14, minval=1), smoothK = input(4, minval=1), smoothD = input(9, minval=1) lenH = input(13, minval=1, title="Simple Moving Average High") srcH = input(high, title="SMA-HIGH") smaHI = sma(srcH, lenH) lenL = input(13, minval=1, title="Simple Moving Average Low") srcL = input(low, title="SMA-LOW") smaLO = sma(srcL, lenL) k = sma(stoch(close, high, low, length), smoothK) d = sma(k, smoothD) plot(k, color=lime, linewidth=2) plot(d, color=red, linewidth=2) h0 = hline(75, color=white, linestyle=solid, linewidth=1) h1 = hline(25, color=white, linestyle=solid, linewidth=1) fill(h0, h1, color=silver, transp=75) bsl = input(true, title="Display Buy-Sell Letters For Conservative Reversal") agg = input(true, title="Display Plus-Minus Symbols For Aggressive Reversal") abvLine = k > 75 and d > 75 ? 1 : 0 belLine = k < 25 and d < 25 ? 1 : 0 xUp = k > d ? 1 : 0 xDown = k < d ? 1 : 0 //Aggressive Trend Entry entryADT = smaHI < high and smaHI < high and high < high entryAUT = low < smaLO and low < smaLO and low > low //Conservative Trend Entry entryCDT = smaHI < high and smaHI < high  and high < high and high < high  entryCUT = low < smaLO and low < smaLO and low > low and low > low //Symbology For Conservative Reversal: Above smaHI(S), Below smaLO(B) plotchar(bsl and entryCDT ? entryCDT : na, title="Conservative Down Trend Entry", offset=0, char='S', location=location.absolute, color=yellow, transp=0) plotchar(bsl and entryCUT ? entryCUT : na, title="Conservative Up Trend Entry", offset=0, char='B', location=location.absolute, color=white, transp=0) plotchar(agg and entryADT ? entryADT : na, title="Aggressive Down Trend Entry", offset=0, char='-', location=location.bottom, color=yellow, transp=0) plotchar(agg and entryAUT ? entryAUT : na, title="Aggressive Up Trend Entry", offset=0, char='+', location=location.bottom, color=white, transp=0) //Indicator when both indicators fire at same time bgcolor(abvLine and xDown and entryCDT ? red : na, transp=70) bgcolor(belLine and xUp and entryCUT ? lime : na, transp=70) bgcolor(abvLine and xDown and entryADT ? red : na, transp=70) bgcolor(belLine and xUp and entryAUT ? lime : na, transp=70)
In the Inputs tab of the script make the
Length - 19
SmoothK, SmoothD, and both moving averages - 10
In the Style tab of the script:
Turn off (uncheck) Agressive Down Trend Entry, and Aggressive Up Trend Entry
Also turn off the second set of Background Colors near the bottom
Basically by turning off all of the Aggressive Entry symbols and colors, the Conservative Entries are all that will display.
With these modifications, run it past your symbols of interests and timeframes to backtest their accuracy.