This mean-reversion strategy plots Bollinger Bands and a long-term moving average directly on the price chart. It enters trades when price candles penetrate the outer Bollinger Bands beyond a user-defined body percentage, anticipating a price reversal. Entries
Strategy · Pine Script v4 · On the chart
Fear + Greed Reversal Short Strategy
This strategy identifies shorting opportunities by calculating Fear and Greed zones based on price extremums relative to moving averages and standard deviation bands.
GitHub stars5on the repository
Pine versionv4older, still runs
Lines of code100
Settings12inputs
LicenceApache-2.0
Last update3 years ago12 May 2023
Add It to Your TradingView Chart
- 1Copy the scriptPress Copy script above, or the copy button on the code below.
- 2Open the Pine EditorOpen a TradingView chart and choose Pine Editor at the bottom of the screen.
- 3Paste over the templateCreate a new strategy, select all of the template text and paste. Press Save and give it a name.
- 4Add it to the chartPress Add to chart. The trades and results appear in the Strategy Tester tab; adjust the settings with the gear icon.
Source Code
100 lines of Pine Script v4 from Fear+Greed_Reversal/Fear+Greed_Reversal_Short_Strategy.txt, published under Apache-2.0. Keep the author's credit and licence lines when you reuse it.
// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © krosenfeld7
//@version=4
strategy("Fear + Greed Reversal Short Strategy (Not Good)", overlay = true, pyramiding = 0,
margin_long = 100, margin_short = 100, default_qty_type = strategy.percent_of_equity,
default_qty_value = 20, initial_capital = 2000, process_orders_on_close = true)
// Set the starting point for backtesting
start = input(title="Backtesting Start", type=input.time, defval=timestamp("1 Jan 2015"))
// Expiration time on orders
maxTimeOpen = input(title="Order Expiration", type=input.integer, defval=100, minval=1)
useAtr = input(title="Use ATR?", type=input.bool, defval=false)
// Algorithm / Strategy Goes here
// Set short variables to execute positions below
// Fear & Greed Section
lowPeriod = input(30, title="Low Period")
highPeriod = input(30, title="High Period")
stdev_period = input(50, title="Stdev Period")
src = input(ohlc4, title="Source")
WMA = input(false, title="Use WMA instead of SMA?")
// Condition One
greedZone1 = (lowest(src, lowPeriod) - src) / lowest(src, lowPeriod)
greedAvg1 = WMA ? wma(greedZone1, stdev_period) : sma(greedZone1, stdev_period)
greedZoneLimit1 = greedAvg1 - stdev(greedZone1, stdev_period)
fearZone1 = (highest(src, highPeriod) - src) / highest(src, highPeriod)
fearAvg1 = WMA ? wma(fearZone1, stdev_period) : sma(fearZone1, stdev_period)
fearZoneLimit1 = fearAvg1 + stdev(fearZone1, stdev_period)
// Condition Two
greedZone2 = WMA ? wma(src, lowPeriod) : sma(src, lowPeriod)
greedAvg2 = WMA ? wma(greedZone2, stdev_period) : sma(greedZone2, stdev_period)
greedZoneLimit2 = greedAvg2 + stdev(greedZone2, stdev_period)
fearZone2 = WMA ? wma(src, highPeriod) : sma(src, highPeriod)
fearAvg2 = WMA ? wma(fearZone2, stdev_period) : sma(fearZone2, stdev_period)
fearZoneLimit2 = fearAvg2 - stdev(fearZone2, stdev_period)
// GreedZone
inGreedZone = greedZone1 < greedZoneLimit1 and greedZone2 > greedZoneLimit2
greedZoneOpen = inGreedZone ? low - tr : na
greedZoneClose = inGreedZone ? low - 2 * tr : na
inFearZone = fearZone1 > fearZoneLimit1 and fearZone2 < fearZoneLimit2
fearZoneOpen = inFearZone ? low - tr : na
fearZoneClose = inFearZone ? low - 2 * tr : na
greedGap = inGreedZone ? greedZoneOpen - greedZoneClose : na
fearGap = inFearZone ? fearZoneOpen - fearZoneClose : na
// Fear / Greed Trend reversing
greedy = not na(greedGap) ? greedGap > 0 : false
noLongerGreedy = (greedy[1] == true and greedy == false) ? 1 : 0
fearful = not na(fearGap) ? fearGap > 0 : false
noLongerFearful = (fearful[1] == true and fearful == false) ? 1 : 0
// Extreme cases
extremeFear = (fearGap > fearZoneClose) ? 1 : 0
extremeGreed = (greedGap > greedZoneClose) ? 1 : 0
short = (fearful[2] == false and fearful[1] == true and fearful == true) ? 1 : 0
plot(greedGap, color=color.purple, style=plot.style_linebr)
plotcandle(greedZoneOpen, greedZoneOpen, greedZoneClose, greedZoneClose, color=color.red, bordercolor=color.white, title="Greedy Candlesticks")
plot(fearGap, color=color.aqua, style=plot.style_linebr)
plotcandle(fearZoneOpen, fearZoneOpen, fearZoneClose, fearZoneClose, color=color.blue, bordercolor=color.white, title="Fearful Candlesticks")
// Average True Range
length = input(title="ATR Length", defval=14, minval=1)
atrMultiplier = input(title="ATR Multiplier", type=input.float, defval=1, minval=0.1)
atr = atr(length)
shortProfitPercent = input(title = "Profit %",
type = input.float, minval = 0.0, step = 0.1, defval = 30) / 100
shortLossPercent = input(title = "Loss %",
type = input.float, minval = 0.0, step = 0.1, defval = 50) / 100
// Calculating exact prices for stop loss and exit prices
shortExitPercentPrice = strategy.position_avg_price * (1 - shortProfitPercent)
shortStopPercentPrice = strategy.position_avg_price * (1 + shortLossPercent)
// Profit & Loss via ATR
shortExitPrice = useAtr ? strategy.position_avg_price - atr * atrMultiplier : shortExitPercentPrice
shortStopPrice = useAtr ? strategy.position_avg_price + atr * atrMultiplier : shortStopPercentPrice
// Plotting profit / loss targets
plot(series = (strategy.position_size < 0) ? shortExitPrice : na, color = #33b802, style = plot.style_linebr, transp = 0, linewidth = 3, title = "Short Target")
plot(series = (strategy.position_size < 0) ? shortStopPrice : na, color = #ff0900, style = plot.style_linebr, transp = 0, linewidth = 3, title = "Short Stop Loss")
// Submit entry orders
if time >= start
strategy.entry(id = "Short", long = strategy.short, comment = "Short Open", when = short)
// Submit exit orders
strategy.exit(id = "Short", limit = shortExitPrice, stop = shortStopPrice, comment = "Short Close", when = strategy.position_size < 0)
strategy.close(id = "Short", comment = "Expired: >" + tostring(maxTimeOpen), when = (barssince(change(strategy.opentrades)) + 1) >= maxTimeOpen)
Overview
Fear + Greed Reversal Short Strategy measures price deviation from recent highs or lows to detect extreme market conditions and potential trend reversals. When a sustained fearful condition is identified, the script executes short positions. Strategy trades exit based on target profit percentages, loss thresholds, ATR multipliers, or an order expiration limit defined by a maximum bar count. It plots fear and greed gaps directly on the main chart overlay.
- Fear and Greed zone detection via standard deviation bands
- Support for SMA or WMA smoothing calculations
- Short entries triggered on fearful zone trend conditions
- Configurable percentage-based profit targets and stop losses
- Order expiration limit after a specified maximum bar count
Details
Published by
krosenfeld7 on GitHub
Type
Strategy, Pine Script v4
Draws
On the price chart
Category
Volatility & bands, Mean reversion, Moving averages, Trend
Markets
Any symbol
Timeframes
Any timeframe
Risk Notes
No repainting, lookahead or stacked entries were found in its code or README. That says nothing about how well it works: test it first.
Settings
The inputs you can change from the gear icon on the chart. Defaults are the author's.
| Setting | Type | Default | Variable |
|---|---|---|---|
| Backtesting Start | time | timestamp("1 Jan 2015") | start |
| Order Expiration | int | 100 | maxTimeOpen |
| Use ATR? | bool | false | useAtr |
| Low Period | int | 30 | lowPeriod |
| High Period | int | 30 | highPeriod |
| Stdev Period | int | 50 | stdev_period |
| Source | source | ohlc4 | src |
| Use WMA instead of SMA? | bool | false | WMA |
| ATR Length | int | 14 | length |
| ATR Multiplier | float | 1 | atrMultiplier |
| Profit % | float | 30 | shortProfitPercent |
| Loss % | float | 50 | shortLossPercent |
Third-party code. ForexR did not write, test or endorse this script, and the summary above was generated automatically from its code and README. Indicators describe the past, and a strategy's backtest can look better than live trading, especially when a script repaints. Check it in the Strategy Tester and on a demo account before you rely on it.
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