Filter Description – Previous Day Bounce with MA Confirmation
This indicator uses a three-stage filtering system to identify high-probability trade setups aligned with recent breakouts and moving average structure.
1. Break of Previous Day High/Low (Close > PDH Close < PDL)
Detects whether the current candle has breached key levels from the previous session:
- For a buy: must be above the previous day’s high.
- For a sell: must be below the previous day’s low.
2. Bounce From MA Confirmation (PDHL Filter)
Ensures price is pulling back into value and rejecting it, validating a bounce from the MA:
- For a buy: candle must dip below the MA + PD range * Multiplier
- For a sell: candle must spike above the MA + PD range * Multiplier
3. MA Based trend filter (Close > MA Close < MA)
- For a buy: Price > MA
- For a sell: Price < MA
This helps time entries after a healthy retracement, avoiding overextended entries.
All three conditions must be met for a valid signal. The filter system is designed to reduce noise, confirm direction, and time-precise pullback entries.
Previous day Bounce with MA Confirmation.lua- (10.33 KiB) Downloaded 162 times
Indicator-based strategy.
https://fxcodebase.com/code/viewtopic.p ... 52#p159752
