Consecutive Bar Direction Study

"It's had five green bars in a row, it's due a red one" is a claim about mean reversion that almost never gets checked against the instrument it is said about. This script checks it: it classifies every bar as up or down by close versus the prior close, tracks runs of the same direction, and for each run length that was actually reached in the loaded history, reports how often the very next bar continued the streak. Continuation is measured at the EXACT length reached, not "length or more". Folding a six-bar streak into a "three or more" bucket's average hides whether whatever edge exists grows, fades or stays flat as the streak extends, which is the entire point of laying the table out by length in the first place. The table also shows how many times a run of each length ended there, independent of the continuation statistic - a length that gets reached often but rarely continues is a different finding from one that is simply rare. Notes and limitations - Direction is close versus the PRIOR close, not open versus close of the same bar, so it reflects the actual price path rather than a single bar's internal shape. - Run lengths of 10 bars or more are pooled into one "10+" bucket to keep the table readable; long streaks are rare enough that a per-length row beyond that point would usually hold only a handful of samples. - This is a descriptive study, not a trading signal. A continuation rate above or below fifty percent by a small margin on a small sample is not evidence of an edge; check the sample counts before acting on the table. - Says nothing about spread, slippage or the size of the move on continuation versus reversal - only whether the direction continued.

Script · MT4 · v1.0 · Free

Tags: Alerts · MT4 Script · MQL4 Source Code

MQL4 & MQL5 scripts · PolyMaria