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description: Learn more about Sniper Trend
---

# Sniper Trend

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**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

### <mark style="color:blue;">Buy & Sell Signals with Trailing Stop</mark>

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.

{% hint style="danger" %}
#### 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**.
{% endhint %}

### <mark style="color:purple;">Sniper Oscillator</mark>

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.

### <mark style="color:orange;">Divergences</mark>

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.

### <mark style="color:green;">Confluence & Reversal Signals</mark>

#### **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

<details>

<summary>Sniper Signals (LongShort)</summary>

* **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.

</details>

<details>

<summary>Period</summary>

* **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**.

</details>

<details>

<summary>Sniper Significance</summary>

* **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.
  * **Lower values** capture smaller price movements, increasing sensitivity.

</details>

<details>

<summary>Sniper Sensitivity</summary>

* **What It Does**: Affects how quickly the indicator adapts to price changes.
* **Impact**:
  * **Higher values** smooth out signals, reducing noise but delaying reactions.
  * **Lower values** make the indicator respond faster, increasing reactivity but also potential false signals.

</details>

<details>

<summary>Trailing Stop Multiplier</summary>

* **What It Does**: Defines the **distance of the trailing stop** from the entry price.
* **Impact**:
  * **Higher values** set the stop **farther**, reducing stop-outs but increasing risk.
  * **Lower values** keep the stop **closer**, locking in profits sooner but increasing the chance of being stopped out.

</details>

<details>

<summary>Filter Trades Based on Trend</summary>

* **What It Does**: Determines whether trades should align with the overall trend.
* **Impact**:
  * **Enabled**: Only **trend-following trades** are taken.
  * **Disabled**: **Counter-trend trades** are also allowed.

</details>

<details>

<summary>Channel Dynamics</summary>

* **What It Does**: Affects how **trend channels** adjust to price movements.
* **Impact**:
  * **Higher values** make channels **wider**, reducing false signals but slowing reaction time.
  * **Lower values** create **tighter channels**, increasing responsiveness but also noise.

</details>

<details>

<summary>Sniper Length</summary>

* **What It Does**: Defines the calculation window for the oscillator.
* **Impact**:
  * **Longer lengths** provide smoother signals but may **lag behind**.
  * **Shorter lengths** increase responsiveness but **introduce more noise**.

</details>

<details>

<summary>Smoothing Length</summary>

* **What It Does**: Controls how much the oscillator is smoothed.
* **Impact**:
  * **Higher values** result in a **smoother** oscillator but with a delayed response.
  * **Lower values** make the oscillator react **faster**, but it may appear choppier.

</details>

<details>

<summary>Smoothing Weight</summary>

* **What It Does**: Defines the intensity of the smoothing effect.
* **Impact**:
  * **Higher values** create **stronger smoothing**, reducing noise.
  * **Lower values** retain more detail but might make the oscillator too volatile.

</details>

<details>

<summary>Divergences</summary>

* **What It Does**: Enables or disables **divergence detection**.
* **Impact**:
  * **Enabled**: The indicator highlights **bullish and bearish divergences**.
  * **Disabled**: Divergences are not displayed.

</details>

<details>

<summary>Divergence Sensitivity</summary>

* **What It Does**: Adjusts how strict divergence detection is.
* **Impact**:
  * **Higher values** require **stronger divergences** before confirmation.
  * **Lower values** detect **weaker divergences**, which may be more frequent but less reliable.

</details>

<details>

<summary>Trend Length</summary>

* **What It Does**: Affects how the indicator defines trends.
* **Impact**:
  * **Higher values** confirm trends **more slowly**, increasing reliability.
  * **Lower values** make the trend react **faster**, but with more potential false reversals.

</details>

<details>

<summary>Sensitivity</summary>

* **What It Does**: Adjusts how sensitive the reversal signals are.
* **Impact**:
  * **Higher values** make reversals appear **less frequently** but more **accurate**.
  * **Lower values** detect **smaller shifts**, increasing the number of reversal signals.

</details>

<details>

<summary>Reversal Factor</summary>

* **What It Does**: Defines how significant a price move needs to be before marking it as a reversal.
* **Impact**:
  * **Higher values** require stronger confirmations, filtering out weak reversals.
  * **Lower values** make the indicator detect **more frequent reversals**.

</details>
