v2.0—Tristan's Multi-Indicator Reversal Strategy

🎯 Multi-Indicator Reversal Strategy - Optimized for High Win Rates
A powerful confluence-based strategy that combines RSI, MACD, Williams %R, Bollinger Bands, and Volume analysis to identify high-probability reversal points. Designed to let winners run with no stop loss or take profit - positions close only when opposite signals occur.

Also, the 3 hour timeframe works VERY well—just a lot less trades.

📈 Proven Performance
This strategy has been backtested and optimized on multiple blue-chip stocks with 80-90%+ win rates on 1-hour timeframes from Aug 2025 through Oct 2025:
✅ V (Visa) - Payment processor
✅ MSFT (Microsoft) - Large-cap tech
✅ WMT (Walmart) - Retail leader
✅ IWM (Russell 2000 ETF) - Small-cap index
✅ NOW (ServiceNow) - Enterprise software
✅ WM (Waste Management) - Industrial services
These stocks tend to mean-revert at extremes, making them ideal candidates for this reversal-based approach. I only list these as a way to show you the performance of the script. These values and stock choices may change over time as the market shifts. Keep testing!

🔑 How to Use This Strategy Successfully
Step 1: Apply to Chart

• Open your desired stock (V, MSFT, WMT, IWM, NOW, WM recommended)
  
• Set timeframe to 1 Hour
  
• Apply this strategy
  
• Check that the Williams %R is set to -20 and -80, and "Flip All Signals" is OFF (can flip this for some stocks to perform better.)
  

Step 2: Understand the Signals
🟢 Green Triangle (BUY) Below Candle:

• Multiple indicators (RSI, Williams %R, MACD, Bollinger Bands) show oversold conditions
  
• Enter LONG position
  
• Strategy will pyramid up to 10 entries if more buy signals occur
  
• Hold until red triangle appears
  

🔴 Red Triangle (SELL) Above Candle:

• Multiple indicators show overbought conditions
  
• Enter SHORT position (or close existing long)
  
• Strategy will pyramid up to 10 entries if more sell signals occur
  
• Hold until green triangle appears
  

🟣 Purple Labels (EXIT):

• Shows when positions close
  
• Displays count if multiple entries were pyramided (e.g., "Exit Long x5")
  

Step 3: Let the Strategy Work
Key Success Principles:
✅ Be Patient - Signals don't occur every day, wait for quality setups
✅ Trust the Process - Don't manually close positions, let opposite signals exit
✅ Watch Pyramiding - The strategy can add up to 10 positions in the same direction
✅ No Stop Loss - Positions ride through drawdowns until reversal confirmed
✅ Session Filter - Only trades during NY session (9:30 AM - 4:00 PM ET)

⚙️ Winning Settings (Already Set as Defaults)
INDICATOR SETTINGS:
- RSI Length: 14
- RSI Overbought: 70
- RSI Oversold: 30
- MACD: 12, 26, 9 (standard)
- Williams %R Length: 14
- Williams %R Overbought: -20 ⭐ (check this! And adjust to your liking)
- Williams %R Oversold: -80 ⭐ (check this! And adjust to your liking)
- Bollinger Bands: 20, 2.0
- Volume MA: 20 periods
- Volume Multiplier: 1.5x

SIGNAL REQUIREMENTS:
- Min Indicators Aligned: 2
- Require Divergence: OFF
- Require Volume Spike: OFF
- Require Reversal Candle: OFF
- Flip All Signals: OFF ⭐

RISK MANAGEMENT:
- Use Stop Loss: OFF ⭐⭐⭐
- Use Take Profit: OFF ⭐⭐⭐
- Allow Pyramiding: ON ⭐⭐⭐
- Max Pyramid Entries: 10 ⭐⭐⭐

SESSION FILTER:
- Trade Only NY Session: ON
- NY Session: 9:30 AM - 4:00 PM ET

**⭐ = Critical settings for success**
## 🎓 Strategy Logic Explained

### **How It Works:**

1. **Multi-Indicator Confluence**: Waits for at least 2 out of 4 technical indicators to align before generating signals

2. **Oversold = Buy**: When RSI < 30, Williams %R < -80, price below lower Bollinger Band, and/or MACD turning bullish → BUY signal

3. **Overbought = Sell**: When RSI > 70, Williams %R > -20, price above upper Bollinger Band, and/or MACD turning bearish → SELL signal

4. **Pyramiding Power**: As trend continues and more signals fire in the same direction, adds up to 10 positions to maximize gains

5. **Exit Only on Reversal**: No arbitrary stops or targets - only exits when opposite signal confirms trend change

6. **Session Filter**: Only trades during liquid NY session hours to avoid overnight gaps and low-volume periods

### **Why No Stop Loss Works:**

Traditional reversal strategies fail because they:
- Get stopped out too early during normal volatility
- Miss the actual reversal that happens later
- Cut winners short with tight take profits

This strategy succeeds because it:
- ✅ Rides through temporary noise
- ✅ Captures full reversal moves
- ✅ Uses multiple indicators for confirmation
- ✅ Pyramids into winning positions
- ✅ Only exits when technical picture completely reverses

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## 📊 Understanding the Display

**Live Indicator Counter (Top Corner / end of current candles):**
Bull: 2/4
Bear: 0/4
(STANDARD)

Shows how many indicators currently align bullish/bearish
"STANDARD" = normal reversal mode (buy oversold, sell overbought)
"FLIPPED" = momentum mode if you toggle that setting

Visual Indicators:
🔵 Blue background = NY session active (trading window)
🟡 Yellow candle tint = Volume spike detected
💎 Aqua diamond = Bullish divergence (price vs RSI)
💎 Fuchsia diamond = Bearish divergence

⚡ Advanced Tips
Optimizing for Different Stocks:
If Win Rate is Low (<50%):

• Try toggling "Flip All Signals" to ON (switches to momentum mode)
  
• Increase "Min Indicators Aligned" to 3 or 4
  
• Turn ON "Require Divergence"
  
• Test on different timeframe (4-hour or daily)
  

If Too Few Signals:

• Decrease "Min Indicators Aligned" to 2
  
• Turn OFF all requirement filters
  
• Widen Williams %R bands to -15 and -85
  

If Too Many False Signals:

• Increase "Min Indicators Aligned" to 3 or 4
  
• Turn ON "Require Divergence"
  
• Turn ON "Require Volume Spike"
  
• Reduce Max Pyramid Entries to 5
  

Stock Selection Guidelines:
Best Suited For:

• Large-cap stable stocks (V, MSFT, WMT)
  
• ETFs (IWM, SPY, QQQ)
  
• Stocks with clear support/resistance
  
• Mean-reverting instruments
  

Avoid:

• Ultra low-volume penny stocks
  
• Extremely volatile crypto (try traditional settings first)
  
• Stocks in strong one-directional trends lasting months
  

🔄 The "Flip All Signals" Feature
If backtesting shows poor results on a particular stock, try toggling "Flip All Signals" to ON:
STANDARD Mode (OFF):

• Buy when oversold (reversal strategy)
  
• Sell when overbought
  
• May work best for: V, MSFT, WMT, IWM, NOW, WM
  

FLIPPED Mode (ON):

• Buy when overbought (momentum strategy)
  
• Sell when oversold
  
• May work best for: Strong trending stocks, momentum plays, crypto
  

Test both modes on your stock to see which performs better!

📱 Alert Setup
Create alerts to notify you of signals:

📊 Performance Expectations
With optimized settings on recommended stocks:
Typical results we are looking for:

• Win Rate: 70-90%
  
• Average Winner: 3-5%
  
• Average Loser: 1-3%
  
• Signals Per Week: 1-3 on 1-hour timeframe
  
• Hold Time: Several hours to days
  

Remember: Past performance doesn't guarantee future results. Always use proper risk management.