ReverseTrendLine

ReverseTrendLine builds support and resistance trendlines from recent highs and lows, then trades rejection behavior around those lines rather than the breakout path used by TrendLine.

Visual overview

The illustrations are schematic, not market data. Exact thresholds, confirmation rules, and risk parameters come from the active strategy config.

Entry Logic

1. Builds high and low trendline candidates from candle pivots.
2. Skips until an enabled side (HIGHS or LOWS) produces a valid reverse setup.
3. Applies volatility and timing filters.
4. Selects the side config from the candidate direction.
5. Places a stop from REVERSE_TRENDLINE_STOP_BASE_PCT.
6. Computes target from REVERSE_TRENDLINE_TARGET_R_MULT.
7. Sizes quantity from MAX_LOSS_VALUE / riskDistance, using the RISK_FEE_RATE, RISK_SLIPPAGE_BPS, and RISK_MARKET_IMPACT_BPS estimates.
8. Returns entry with reverse-trendline figures and signal seed indicators.

Entry code:

• REVERSE_TRENDLINE_SIGNAL

Exits

When a position exists:

• REVERSE_TRENDLINE_FAILED_BOUNCE_EXIT when the expected bounce/rejection fails.
• otherwise POSITION_EXISTS.

Configuration keys

Keys are grouped by the part of the strategy they control. A value of 0 or false disables the corresponding optional filter unless stated otherwise.

Group	Keys	Purpose
Runtime	ENV, INTERVAL, MAKE_ORDERS, CLOSE_OPPOSITE_POSITIONS, BACKTEST_PRICE_MODE	Select the runtime mode, candle interval, order behavior, and backtest fill price.
AI	AI_ENABLED, AI_MODE, MIN_AI_QUALITY	Control optional AI enrichment and its acceptance threshold.
Risk	RISK_FEE_RATE, RISK_SLIPPAGE_BPS, RISK_MARKET_IMPACT_BPS, MAX_LOSS_VALUE, REVERSE_TRENDLINE_STOP_BASE_PCT, REVERSE_TRENDLINE_TARGET_R_MULT	Estimate one-way fees, slippage, and market impact, size positions, and set the stop distance and target R multiple.
Shared indicators	MA_FAST, MA_MEDIUM, MA_SLOW, OBV_SMA, ATR, ATR_PCT_SHORT, ATR_PCT_LONG, BB, BB_STD, MACD_FAST, MACD_SLOW, MACD_SIGNAL	Set the lookback periods used by the trendline context and signal filters.
Line geometry	TRENDLINE.minTouches, TRENDLINE.offset, TRENDLINE.epsilon, TRENDLINE.epsilonOffset	Define pivot spacing, required touches, and price tolerance for fitted lines.
Rejection quality	REVERSE_TRENDLINE_MIN_REJECTION_WICK_PCT, REVERSE_TRENDLINE_MIN_REJECTION_STRENGTH_PCT, REVERSE_TRENDLINE_MIN_REJECTION_STRENGTH_PCT_LONG, REVERSE_TRENDLINE_MIN_REJECTION_STRENGTH_PCT_SHORT, REVERSE_TRENDLINE_MAX_BREAK_ATR_RATIO, REVERSE_TRENDLINE_MAX_BREAK_ATR_RATIO_LONG, REVERSE_TRENDLINE_MAX_BREAK_ATR_RATIO_SHORT	Require a visible rejection and limit how far price may pass through the line, globally or by direction.
Market alignment	REVERSE_TRENDLINE_MAX_BTC_MA_SPREAD_PCT, REVERSE_TRENDLINE_MAX_BTC_MA_SPREAD_PCT_LONG, REVERSE_TRENDLINE_MAX_BTC_MA_SPREAD_PCT_SHORT, REVERSE_TRENDLINE_REQUIRE_COIN_BIAS_ALIGNMENT, REVERSE_TRENDLINE_REQUIRE_BTC_BIAS_ALIGNMENT	Limit BTC trend spread and optionally require coin and BTC bias to agree with the trade.
Entry and exit timing	REVERSE_TRENDLINE_ALLOWED_ENTRY_TIMINGS, REVERSE_TRENDLINE_FAILED_BOUNCE_EXIT_PCT	Choose accepted detector states and the adverse move that closes a failed bounce.
Direction policy	HIGHS.*, LOWS.*	Enable rejection from high or low trendlines and set its direction and minimum risk/reward ratio.

Signal Payload

The strategy stores:

• reverse-trendline figures from buildReverseTrendLineFigures(...)
• signal seed indicators from buildReverseTrendlineSignalSeed(...)
• orderPlan.qty
• orderPlan.stopLossPrice
• one take-profit at the computed target

Common Skip Reasons

• NO_TRENDLINE
• POSITION_EXISTS
• DEV_TRADE_COOLDOWN
• VERY_VOLATILITY
• REVERSE_TRENDLINE_TIMING:<code>
• INVALID_QTY
• RISK_RATIO:<value>

Validation Notes

Trendline strategies are sensitive to pivot selection, candle gaps, and chart scaling. Inspect generated figures before interpreting metrics, especially when changing TRENDLINE.epsilon or timeframe.

Related:

• TrendLine
• Backtesting caveats