How does the Warrior Reversal Trading Indicator work in eSignal 12.x? – eSignal Knowledge Base

DayTrade Warrior

The Warrior Reversal Trading Indicator is designed to complement the Warrior Reversal Trading Strategy (http://www.warriortrading.com/reversal-trading-strategy/). This Indicator can be used for scanning or as a plotted red light / green light indicator on the charts.

The DayTrade Warrior indictor is free with a subscription to eSignal. (eSignal 12.1 is required)

Adding the DayTrade Warrior indictor to a Chart window

To add the DayTrade Warrior indictor to your chart, right click the chart window and select Insert Study.

The insert study dialog box will appear. Select the Add-on Studies tab and choose the Day Trade Warrior folder. Double click on the Cameron_Reversal_Indictor to add it to your chart.

Customization Instructions

When you load the Warrior Reversal Indicator on your chart you will have the ability to edit the filters.

Customizable Filters:

RSI period = Default is 5min

RSI source = close

RSI upper min for top reversals = 80

RSI lower min for bottom reversals = 20

We found that the best reversals will occur when stocks have an RSI above 80 or below 20. Some traders may choose to tighten these filters or loosen them according to his or her preference.

Bollinger Band Cross Overs are a key component to this reversal strategy. This is how we separate all the noise from this Indicator.

Bollinger Band #1 is a 20 period Bollinger Band with a 2.0 standard deviation. This is considered the default bollinger band setting.

Bollinger Band #2 is a 10 period Bollinger Band with a 1.4 standard deviation. This is considered our Fast Moving Bollinger Band.

When the fast moving Bollinger Band crosses the slow moving Bollinger Band in the direction of the trend it is a good indicator of trend exhaustion. It will be at this point we consider the possibility of a Reversal Trade.