The Sniper Trend is an advanced trend-following reversal indicator designed to pinpoint sniper-precision market reversals within trends. By leveraging proprietary filtering techniques, multi-layered statistical smoothing, and volatility-responsive adjustments, this tool helps traders capture high-probability reversals while staying aligned with the underlying trend.
Winrate
Risk Reward
75% - 85%
1:4
Features
Buy & Sell Signals with Trailing Stop
The core feature of the Sniper Trend is the Buy & Sell signals with a trailing stop. These signals are designed primarily to catch reversals within trends. However, if you disable the "Filter Trades Based on Trend" setting, you can also receive counter-trend signals.
This indicator focuses on getting in as early as possible while still validating a potential trend change. It strikes a balance between entering too early without confirmation and entering early with enough information to anticipate a potential reversal.
To help manage risk, a dynamic trailing stop is included to protect your trades.
Important Note:
Reversal trading is inherently riskier than trend trading due to higher volatility, larger price swings within short periods, and potential fakeouts around support and resistance levels. If a stop loss is triggered and we fail to take the loss, the potential loss can be significant, as the current trend is likely to continue.
Sniper Oscillator
The Sniper Oscillator is the secondary focus of this toolkit, designed to guide trend direction and identify overbought and oversold areas. This oscillator functions similarly to other oscillators.
When the oscillator is above 0, it indicates a bullish trend.
When the oscillator is below 0, it signals a bearish trend.
Overbought and oversold areas come into play when the oscillator moves beyond the upper or lower band. These price movements can either signal the start of a new trend or simply be an overreaction that may soon be corrected.
Divergences
Divergences occur when the price action and the Sniper Oscillator move in opposite directions, signaling a potential trend reversal.
Bullish Divergence: Happens when price makes a lower low, but the oscillator forms a higher low. This suggests that selling pressure is weakening, and a potential reversal to the upside may follow.
Bearish Divergence: Occurs when price makes a higher high, but the oscillator forms a lower high. This indicates that buying momentum is fading, increasing the chances of a reversal to the downside.'
Traders can use divergences as a confirmation tool for potential reversals. When a divergence aligns with support/resistance levels or other confluence factors, it strengthens the signal. However, divergences alone are not always enough, combining them with our reversal signals can improve accuracy.
Confluence & Reversal Signals
Confluence Bands
The final component of the indicator is the Confluence Bands—the upper and lower bands located at values 2 and -2. These bands help confirm trend direction and price movements.
When the coloring is strong, it indicates a strong price movement in that direction.
The bands can be used to confirm strong trends as well as identify overbought and oversold areas.
Early Reversal Signals
In addition to the bands, early reversal signals are marked by triangles appearing at the top or bottom of the bands. These are not meant to be followed blindly; instead, they should be used alongside reversal signals, divergences, or overbought/oversold areas. The triangles act as an early warning of a potential market shift, helping traders stay ahead of possible reversals.
Settings
Sniper Signals (LongShort)
What It Does: Enables or disables the Buy & Sell signals.
Impact:
Enabled: The indicator provides trade signals based on detected trend reversals.
Disabled: No trade signals are generated, but other features remain active.
Period
What It Does: Controls the lookback period for trend detection.
Impact:
Increasing the period makes signals less frequent but more reliable by filtering out noise.
Decreasing the period makes signals more frequent but may introduce false signals.
Sniper Significance
What It Does: Adjusts the threshold for detecting anomalies in price action.
Impact:
Higher values filter out weaker signals, showing only the most significant reversals.
