Reversal bars earned their explicit name for their reputation to signal reversals in a market’s price. After some years in the financial markets, I am very aware of the value being wary of popularly accepted folk wisdom. Fairly often, I find myself in positions that end the trading day with what is generally defined as one type of a reversal bar. Am I facing a higher likelihood of a price reversal? Should this influence my trade management? The question of this study thus is:

Here is an indicator that plots horizontal lines on the chart at a certain percent value above and below the last price. The request for this indicator came up in the Tradestation Community Forum a few weeks ago. You can download the coding for free, but I am also going to go through the creation process step by step for those of you with the intention to learn how to program in EasyLanguage and reuse code snippets that simplify and speed up the development of future indicato