Flip Flop Indicator

Category: momentum, market_structure

Identifies trend reversals by tracking the low of the highest bullish bar and the high of the lowest bearish bar within a lookback period. A close beyond these levels triggers 'Flip Flop' signals.

Formula

\begin{cases} \text{BULL\_LEVEL} = \text{Low of Bar } i \mid \text{High}_i = \max(\text{Highs of Bullish Bars in } N) \\ \text{BEAR\_LEVEL} = \text{High of Bar } j \mid \text{Low}_j = \min(\text{Lows of Bearish Bars in } N) \end{cases} \implies \text{Signal if } C > \text{BEAR\_LEVEL} \text{ or } C < \text{BULL\_LEVEL}

Inputs

• lookbackInput (default: 20)
• display_low_of_highest_bull_bar (default: true)
• display_high_of_lowest_bear_bar (default: true)

See signal primitives and every published strategy that uses Flip Flop Indicator on WOBR StrategyVerse.