3-Bar Reversal

About the Script
This script automatically detects and plots a signal when a Three-Bar Reversal pattern appears on the chart, helping traders identify potential trend reversals with ease.

How to Use the Script
1) Add the script to your chart.
2) Customize the visual appearance to match your preferences.
3) Click "OK" to apply the changes.

Once configured, the script will highlight valid Three-Bar Reversal patterns when they form.

How the Script Works
The Three-Bar Reversal pattern consists of three consecutive candlesticks, each playing a crucial role in identifying market shifts:

First Bar: Represents the existing trend.
In a bullish reversal, the first bar is typically bearish (downward).
In a bearish reversal, the first bar is typically bullish (upward).

Second Bar: Indicates indecision or trend exhaustion.
This bar often has a smaller body (such as a doji or spinning top), showing weakening momentum.
It may also feature wicks on both sides, reflecting market uncertainty.

Third Bar: Confirms the reversal.
In a bullish reversal, the third bar closes above the high of the first bar, signaling a potential upward move.
In a bearish reversal, the third bar closes below the low of the first bar, signaling a potential downward trend.

Once the pattern is confirmed, a marker will appear below the third bar, helping traders quickly spot opportunities.