CloseFlipAlgo

CLOSE POSITION FLIP STRATEGY

Quick Facts:

• Category: Momentum Reversal
• Markets: All liquid markets
• Timeframes: 5min, 15min, 1H

Overview

The CloseFlip Algorithm detects rapid sentiment reversals by monitoring consecutive closes in one direction followed by a flip in the opposite direction. This pattern captures the moment when buyers or sellers exhaust themselves and momentum shifts.

When price closes in the same direction for N consecutive bars, market participants become stretched. A sudden flip in closing direction signals capitulation and potential reversal opportunity.

How It Works

CONSECUTIVE CLOSE TRACKING The algorithm monitors closing direction:

• bullishClose = Close > Open
  • bearishClose = Close < Open
  • consecutiveBullish counter for consecutive up closes
  • consecutiveBearish counter for consecutive down closes

FLIP DETECTION A "flip" occurs when:

• Bullish Flip: N consecutive bearish closes followed by bullish close
  • Bearish Flip: N consecutive bullish closes followed by bearish close
  • minConsecutive parameter controls the threshold

MOMENTUM CONFIRMATION Optional filters ensure the flip is significant:

• Minimum flip bar size (ATR-based)
  • Volume spike on flip bar
  • VMAlgo confirmation

Key Parameters

FLIP DETECTION:

• minConsecutive (3): Minimum consecutive closes before flip
  • maxConsecutive (7): Maximum lookback for sequence
  • minFlipBodyATR (0.5): Minimum flip bar body as ATR ratio

VOLUME FILTER:

• useVolumeFilter (true): Require volume confirmation
  • volumeMultiplier (1.3): Minimum volume spike on flip

Best Use Cases

✅ EXHAUSTION REVERSALS after extended moves ✅ MEAN REVERSION at overbought/oversold levels ✅ SCALPING momentum shifts ✅ CONFIRMATION for other reversal signals