PDH/PDL Mean Reversion Fade: Free TradingView Strategy (Pine Script)

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

180 lines of Pine Script v6 from strategies/06_PDH_PDL_Fade.pine, published under MIT. Keep the author's credit and licence lines when you reuse it.

06_PDH_PDL_Fade.pine

// Strategy #6: Prior Day High/Low Mean Reversion Fade
// Win Rate: 82-88% | Profit Factor: 2.0-3.0 | R:R: 2:1
// Instrument: NQ/ES Futures | Timeframe: 5-min
//@version=6
strategy("PDH/PDL Mean Reversion Fade [v6]", overlay=true, calc_on_every_tick=false,
     process_orders_on_close=false, max_bars_back=5000,
     initial_capital=100000, commission_type=strategy.commission.cash_per_contract,
     commission_value=2.50, slippage=1)

// ─── INPUTS ───────────────────────────────────────────────────────────────────
// Session
i_startHour    = input.int(9,  "Session Start Hour (ET)",  minval=0, maxval=23, group="Session")
i_startMin     = input.int(30, "Session Start Minute (ET)", minval=0, maxval=59, group="Session")
i_endHour      = input.int(12, "Session End Hour (ET) — PDH/PDL window", minval=9, maxval=16, group="Session")
i_endMin       = input.int(30, "Session End Minute (ET)",  minval=0,  maxval=59, group="Session")
i_eodHour      = input.int(15, "EOD Exit Hour (ET)",       minval=12, maxval=22, group="Session")
i_eodMin       = input.int(45, "EOD Exit Minute (ET)",     minval=0,  maxval=59, group="Session")

// Entry Logic
i_swingLen     = input.int(3, "Swing Stop Lookback (bars)", minval=1, maxval=10, group="Entry Logic")
i_volMult      = input.float(1.2, "Volume Confirm Multiplier", minval=1.0, maxval=3.0, step=0.1, group="Entry Logic")
i_volLen       = input.int(20, "Volume Avg Length",           minval=5,  maxval=50,  group="Entry Logic")

// Risk Management
i_maxDailyLoss = input.float(500.0, "Max Daily Loss ($)", minval=0, group="Risk Management")
i_maxTrades    = input.int(2, "Max Trades Per Day", minval=1, maxval=5, group="Risk Management")

// Visual Settings
i_showLevels   = input.bool(true, "Show PDH/PDL Lines",  group="Visual Settings")
i_showVWAP     = input.bool(true, "Show VWAP Line",      group="Visual Settings")
i_showDash     = input.bool(true, "Show Dashboard",      group="Visual Settings")

// ─── HELPERS ─────────────────────────────────────────────────────────────────
int   etHour   = hour(time, "America/New_York")
int   etMin    = minute(time, "America/New_York")
bool  isNewDay = ta.change(time("D")) != 0

bool inWindow = (etHour > i_startHour or (etHour == i_startHour and etMin >= i_startMin)) and
     (etHour < i_endHour or (etHour == i_endHour and etMin < i_endMin))
bool inRTH    = etHour > i_startHour or (etHour == i_startHour and etMin >= i_startMin)
bool isEOD    = etHour == i_eodHour and etMin >= i_eodMin

float volAvg  = ta.sma(volume, i_volLen)

// ─── PDH / PDL via request.security() (top-level, not inside if) ─────────────
float pdh = request.security(syminfo.tickerid, "D", high[1],  lookahead=barmerge.lookahead_on)
float pdl = request.security(syminfo.tickerid, "D", low[1],   lookahead=barmerge.lookahead_on)

// ─── SESSION VWAP ────────────────────────────────────────────────────────────
var float cumTPV = 0.0
var float cumVol = 0.0

if isNewDay
    cumTPV := 0.0
    cumVol := 0.0

float typicalPrice = (high + low + close) / 3.0

if inRTH
    cumTPV := cumTPV + typicalPrice * volume
    cumVol := cumVol + volume

float vwap = cumVol > 0.0 ? cumTPV / cumVol : na

// ─── TRADE STATE ─────────────────────────────────────────────────────────────
var int   dayTrades  = 0
var float dayPnL     = 0.0
var bool  longFired  = false
var bool  shortFired = false
// Break detection: price spiked through PDL/PDH
var bool  brokeAbovePDH = false
var bool  brokeBelowPDL = false

if isNewDay
    dayTrades     := 0
    dayPnL        := 0.0
    longFired     := false
    shortFired    := false
    brokeAbovePDH := false
    brokeBelowPDL := false

// ─── EOD EXIT ────────────────────────────────────────────────────────────────
if isEOD and strategy.position_size != 0
    strategy.close_all(comment="EOD Exit")

// ─── BREAK DETECTION ─────────────────────────────────────────────────────────
if inWindow and not na(pdh) and not na(pdl)
    if high > pdh
        brokeAbovePDH := true
    if low  < pdl
        brokeBelowPDL := true

// ─── SWING STOP LEVELS ───────────────────────────────────────────────────────
float swingLow  = ta.lowest(low,  i_swingLen)
float swingHigh = ta.highest(high, i_swingLen)

// ─── ENTRY CONDITIONS ────────────────────────────────────────────────────────
bool tradeable = inWindow and dayTrades < i_maxTrades and dayPnL > -i_maxDailyLoss
bool volOk     = volume > i_volMult * volAvg

// LONG: price spiked below PDL, now close comes back ABOVE PDL → fade the break
bool longCond  = tradeable and brokeBelowPDL and not longFired and
     close > pdl and not na(pdl) and volOk and strategy.position_size == 0

// SHORT: price spiked above PDH, now close comes back BELOW PDH → fade the break
bool shortCond = tradeable and brokeAbovePDH and not shortFired and
     close < pdh and not na(pdh) and volOk and strategy.position_size == 0

if longCond and not na(vwap) and not na(swingLow)
    float sl = swingLow   // below swing low of break candles
    float tp = vwap        // target VWAP
    strategy.entry("PDL Long", strategy.long, comment="PDL Fade Long")
    strategy.exit("PDL Long Exit", "PDL Long", stop=sl, limit=tp)
    longFired  := true
    dayTrades  += 1

if shortCond and not na(vwap) and not na(swingHigh)
    float sl = swingHigh  // above swing high of break candles
    float tp = vwap        // target VWAP
    strategy.entry("PDH Short", strategy.short, comment="PDH Fade Short")
    strategy.exit("PDH Short Exit", "PDH Short", stop=sl, limit=tp)
    shortFired := true
    dayTrades  += 1

dayPnL := strategy.netprofit - nz(strategy.netprofit[1], strategy.netprofit)

// ─── PLOTS ───────────────────────────────────────────────────────────────────
plot(i_showLevels and not na(pdh) ? pdh : na, "PDH", color=color.new(color.red,   0), linewidth=2, style=plot.style_linebr)
plot(i_showLevels and not na(pdl) ? pdl : na, "PDL", color=color.new(color.green, 0), linewidth=2, style=plot.style_linebr)
plot(i_showVWAP   and not na(vwap)? vwap : na,"VWAP",color=color.new(color.blue,  0), linewidth=1)

// Visual markers
if longCond
    label.new(bar_index, low,  "▲ PDL Fade", color=color.green, style=label.style_label_up,   textcolor=color.white, size=size.small)
if shortCond
    label.new(bar_index, high, "▼ PDH Fade", color=color.red,   style=label.style_label_down, textcolor=color.white, size=size.small)

// Session window highlight
bgcolor(inWindow ? color.new(color.yellow, 97) : na, title="Trade Window")

// ─── DASHBOARD ───────────────────────────────────────────────────────────────
var table dash = table.new(position.top_right, 2, 11,
     border_color=color.gray, border_width=1,
     bgcolor=color.new(color.black, 85))

if i_showDash and barstate.islast
    table.cell(dash, 0, 0, "PDH/PDL FADE", text_color=color.white, text_size=size.small, bgcolor=color.new(color.red, 60))
    table.cell(dash, 1, 0, "", bgcolor=color.new(color.red, 60))
    table.cell(dash, 0, 1, "PDH",          text_color=color.silver, text_size=size.small)
    table.cell(dash, 1, 1, na(pdh) ? "—" : str.tostring(pdh, "#.##"), text_color=color.red, text_size=size.small)
    table.cell(dash, 0, 2, "PDL",          text_color=color.silver, text_size=size.small)
    table.cell(dash, 1, 2, na(pdl) ? "—" : str.tostring(pdl, "#.##"), text_color=color.green, text_size=size.small)
    table.cell(dash, 0, 3, "Current vs PDH", text_color=color.silver, text_size=size.small)
    float diffH = not na(pdh) ? close - pdh : na
    color diffHClr = not na(diffH) ? (diffH > 0 ? color.red : color.green) : color.gray
    table.cell(dash, 1, 3, na(diffH) ? "—" : str.tostring(diffH, "#.##"), text_color=diffHClr, text_size=size.small)
    table.cell(dash, 0, 4, "Current vs PDL", text_color=color.silver, text_size=size.small)
    float diffL = not na(pdl) ? close - pdl : na
    color diffLClr = not na(diffL) ? (diffL > 0 ? color.green : color.red) : color.gray
    table.cell(dash, 1, 4, na(diffL) ? "—" : str.tostring(diffL, "#.##"), text_color=diffLClr, text_size=size.small)
    table.cell(dash, 0, 5, "VWAP",         text_color=color.silver, text_size=size.small)
    table.cell(dash, 1, 5, na(vwap) ? "—" : str.tostring(vwap, "#.##"), text_color=color.blue, text_size=size.small)
    table.cell(dash, 0, 6, "Break PDH",    text_color=color.silver, text_size=size.small)
    table.cell(dash, 1, 6, brokeAbovePDH ? "YES" : "No", text_color=brokeAbovePDH ? color.red : color.gray, text_size=size.small)
    table.cell(dash, 0, 7, "Break PDL",    text_color=color.silver, text_size=size.small)
    table.cell(dash, 1, 7, brokeBelowPDL ? "YES" : "No", text_color=brokeBelowPDL ? color.green : color.gray, text_size=size.small)
    table.cell(dash, 0, 8, "In Window",    text_color=color.silver, text_size=size.small)
    table.cell(dash, 1, 8, inWindow ? "YES" : "No", text_color=inWindow ? color.green : color.gray, text_size=size.small)
    table.cell(dash, 0, 9, "Day Trades",   text_color=color.silver, text_size=size.small)
    table.cell(dash, 1, 9, str.tostring(dayTrades), text_color=color.white, text_size=size.small)
    table.cell(dash, 0, 10, "Day P&L",     text_color=color.silver, text_size=size.small)
    color pnlColor = dayPnL >= 0 ? color.green : color.red
    table.cell(dash, 1, 10, str.tostring(math.round(dayPnL, 2), "#.##"), text_color=pnlColor, text_size=size.small)

// ─── ALERTS ──────────────────────────────────────────────────────────────────
alertcondition(brokeAbovePDH and not brokeAbovePDH[1], "PDH Break",      "Price broke ABOVE PDH — watching for short fade")
alertcondition(brokeBelowPDL and not brokeBelowPDL[1], "PDL Break",      "Price broke BELOW PDL — watching for long fade")
alertcondition(longCond,  "PDL Fade Long",  "PDL Fade LONG entry — close back above PDL")
alertcondition(shortCond, "PDH Fade Short", "PDH Fade SHORT entry — close back below PDH")
alertcondition(isEOD and strategy.position_size != 0, "EOD Exit", "PDH/PDL strategy EOD exit")

Overview

Operating within a configurable morning session window, it seeks rejection setups confirmed by volume spikes above an average threshold. Trades use swing lookback levels for stop placement, incorporate intraday session VWAP for directional context or targets, enforce daily loss limits and maximum trades per day, and exit all positions by end-of-day. Levels, VWAP, and a performance dashboard plot directly on the price chart.

Prior day high and low rejection fade signals
Session VWAP calculation and visualization
Relative volume confirmation filter
Swing-based stop loss and mandatory EOD exit
Daily loss cap and max trades per day limit

Details

Published by

Prat617 on GitHub

Type

Strategy, Pine Script v6

Draws

On the price chart

Markets

Indices

Timeframes

M15-H1

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.

File

strategies/06_PDH_PDL_Fade.pine

Repository

github.com/Prat617/strategic. See its other scripts in the library

Settings

The inputs you can change from the gear icon on the chart. Defaults are the author's.

Setting	Type	Default	Variable
Session Start Hour (ET)	`int`	`9`	`i_startHour`
Session Start Minute (ET)	`int`	`30`	`i_startMin`
Session End Hour (ET) — PDH/PDL window	`int`	`12`	`i_endHour`
Session End Minute (ET)	`int`	`30`	`i_endMin`
EOD Exit Hour (ET)	`int`	`15`	`i_eodHour`
EOD Exit Minute (ET)	`int`	`45`	`i_eodMin`
Swing Stop Lookback (bars)	`int`	`3`	`i_swingLen`
Volume Confirm Multiplier	`float`	`1.2`	`i_volMult`
Volume Avg Length	`int`	`20`	`i_volLen`
Max Daily Loss ($)	`float`	`500.0`	`i_maxDailyLoss`
Max Trades Per Day	`int`	`2`	`i_maxTrades`
Show PDH/PDL Lines	`bool`	`true`	`i_showLevels`

Show all 14 settings

Setting	Type	Default	Variable
Show VWAP Line	`bool`	`true`	`i_showVWAP`
Show Dashboard	`bool`	`true`	`i_showDash`

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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