Retest Confirm Point Tibbu

11 ago

Creating a "Retest Confirm Point" indicator that generates buy and sell signals involves defining criteria to confirm that a price retest is valid before issuing a trade signal. This generally requires identifying a key level (such as support, resistance, or a trendline), detecting a retest of this level, and then confirming the validity of the retest.

Here’s a Pine Script example to help you create such an indicator. This script identifies and confirms retests of previous highs and lows, and generates buy and sell signals based on those retests: Explanation:

Recent High and Low:
The script identifies the highest and lowest prices over a specified lookback period.
These levels are plotted on the chart as reference points.

Retest Conditions:
Retest High: The closing price is within a buffer range around the recent high.
Retest Low: The closing price is within a buffer range around the recent low.

Confirmation:
Confirm High: The closing price reaches a new high over a set number of bars after the retest condition.
Confirm Low: The closing price reaches a new low over a set number of bars after the retest condition.

Signals:
Buy Signal: Issued when a confirmed retest of the recent high occurs.
Sell Signal: Issued when a confirmed retest of the recent low occurs.

Customization:

Lookback Period: Adjust to determine the historical range for finding recent highs and lows.
Confirmation Bars: Change the number of bars used to confirm the retest.
Retest Buffer: Adjust the percentage buffer to fine-tune the retest conditions.

Testing and Optimization:

Backtest: Always backtest the strategy on historical data to ensure it behaves as expected.
Adjust Parameters: Modify parameters based on the asset, timeframe, and market conditions.

Feel free to modify this script further based on your specific trading strategy and needs. If you need help with any additional features or further customization, let me know!
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