With the Kovach Reversals indicator, we automate the process of scanning for technical candlestick
reversal patterns. A bearish
reversal is shown by a red triangle above the high of the most recent candlestick
in the pattern, a green triangle indicates a bullish
reversal. To mitigate false positives, we filter for the reversal patterns at the extrema of the price range, where a reversal is highly likely to occur. While many indicators are susceptible to time lag, the reversals are drawn instantaneously as the bar forms, giving you the ability
to get in on a trade as the setup develops.
This indicator works best with the Kovach Momentum, Kovach Chande, or Kovach OBV indicators, where we can leverage the strengths of both to increase our probability of success.