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ReverseTrendLine

ReverseTrendLine is a built-in TypeScript strategy from @tradejs/strategies.

It builds support/resistance trendlines from recent highs and lows, then researches rejection behavior around those lines instead of the primary breakout path.

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, with FEE_PERCENT buffer.
  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.

Config Parameters​

Trendline model:

  • TRENDLINE.minTouches
  • TRENDLINE.offset
  • TRENDLINE.epsilon
  • TRENDLINE.epsilonOffset
  • REVERSE_TRENDLINE_STOP_BASE_PCT
  • REVERSE_TRENDLINE_TARGET_R_MULT

Side configs:

  • HIGHS.enable, HIGHS.direction, HIGHS.minRiskRatio
  • LOWS.enable, LOWS.direction, LOWS.minRiskRatio

Shared groups:

  • runtime: ENV, INTERVAL, MAKE_ORDERS, BACKTEST_PRICE_MODE
  • AI/ML: AI_ENABLED, AI_MODE, MIN_AI_QUALITY, ML_ENABLED, ML_THRESHOLD
  • risk: FEE_PERCENT, MAX_LOSS_VALUE
  • shared indicators: MA, OBV, ATR, BB, MACD fields

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: