SMA7 Tail Reversal

📌 Description:
The SMA7 Tail Reversal indicator is designed to identify potential counter-trend trading opportunities by checking if candle wicks (tails) respect a key moving average level (SMA7).
This indicator highlights price action where candles are clearly separated from the moving average, suggesting a possible reversal or temporary correction.

📌 How It Works:

Moving Average Calculation:
Calculates a simple moving average (SMA) of length 7 to act as the primary trend filter.
Candle Classification:

Bullish Candle: A candle where the closing price is higher than the opening price, with a short upper wick.

Bearish Candle: A candle where the closing price is lower than the opening price, with a short lower wick.
Conditions for Coloring Candles:
Long Condition (Green Candle):

High & Low are both below the SMA7 line.

Volume is above the 20-period average.

A bullish candle is detected.

Short Condition (Red Candle):

High & Low are both above the SMA7 line.

Volume is above the 20-period average.

A bearish candle is detected.

📌 Visual Representation:

Green Candles: Potential long signals when price action stays below the SMA7 line.
Red Candles: Potential short signals when price action stays above the SMA7 line.
Yellow Line: SMA7, used as the dynamic threshold for signal generation.

📌 Usage:

Best applied to volatile markets with clear trends.
Effective in detecting counter-trend opportunities where price diverges from the SMA7 line.
Works well with additional confirmation tools for better accuracy.

릴리즈 노트

// Softer candle color settings
var color longCol = #6EE7B7 // Light Green (Soft long signal)
var color shortCol = #FCA5A5 // Light Red (Soft short signal)

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without plot sma7

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sma 7

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plotbar(open, high, low, close, color=barCol)

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