MTF Washout Reversal
π MTF Washout Reversal β cross-timeframe confirmation
An LTF bull divergence must be cross-confirmed by an HTF momentum-recovery signal happening at the same time. A hit needs all three:
1) LTF bull divergence on 30m or 1h β price lower low + RSI(14) higher low at a confirmed pivot low (5 bars each side, gap 5β60 bars).
2) HTF long signal on 2h, 4h or 6h β the bar that exited β₯7 consecutive bars where stoch %K AND stochRSI %K were both < 25.
3) Recency match β the LTF pivot sits within 10 HTF bars of the HTF signal, and the pivot fired within the last 14 days.
vs Washout Reversal β the daily-MA gate is not part of this algorithm; the HTF cross-confirmation IS the filter. The π‘οΈ/π₯ͺ badges here are informational, derived from the same daily-MA data:
π‘οΈ Qualified β pivot close 0β5% above the nearest daily MA below (reversal on support).
π₯ͺ Sandwiched β at least one daily MA below and one above (support underneath, overhead resistance).
A row can be both (both badges), or neither (dash β MTF keeps those rows anyway, unlike Washout Reversal).
Column glossary β Entry: close of the pivot-confirmation bar (pivot + 5 bars) β the first price you could realistically act on; Age and all returns anchor here, matching the backtest. Since Entry: move from entry close to now. Pivot: when/where the divergence low printed (pattern anchor, not tradeable; the Bars Apart match still keys off it). HTF Sig @: when the HTF washout-exit bar fired. HTF Consec: pre-signal oversold depth in bars (bigger = deeper washout = stronger spring). Bars Apart: distance between LTF pivot and HTF signal in HTF bars (β€10 required). Sig Bars Ago: how long ago the HTF signal fired. PnL 10d: forward 10-daily-bar return from entry close.
Filters β no boxes = everything; π‘οΈ/π₯ͺ restrict to checked badges; π― restricts to Targeted Tickers. Schedule: every 30 minutes, 24/7 (shared cycle with Washout Reversal).