3-Candle Reversal & Retest (Severin-style) v6

3-Candle Reversal & Retest (Severin-style)

What it does
Detects a three-candle reversal with a retest entry, then plots compact buy/sell markers anchored to the exact bar and price. Designed for fast execution timeframes (1–5m) but works on any TF.

Pattern logic (longs)

Approach candle: bearish candle closing above a chosen reference level.

Reversal candle: bullish candle with a minimum body size (filters out dojis). Optional requirement that it sweeps the prior low.

Retest/entry candle: dips back into a configurable fraction of candle #2’s body and closes bullish (lower wick first).
Shorts use the mirror conditions.

Reference level (choose one)

Manual level – type a price or drag the built-in cyan line.

Previous Day High/Low

Session VWAP

SMA (length input)

The approach candle must close on the correct side of this level (above for longs, below for shorts).

Signals & visuals

Green triangle = 3C Long. Plotted at low − pad ticks.

Red triangle = 3C Short. Plotted at high + pad ticks.

All markers are price-anchored (bar index + price), so they move with candles when you pan/zoom.

Option to keep markers only for the last N bars (prevents “floating” artefacts when the chart rescales).

Inputs

Reference source (Manual / PDH / PDL / VWAP / SMA)

Manual price and draggable line toggle (+ one-click reset)

Min body % for reversal candle

Require liquidity sweep on candle #2 (on/off)

Retest zone fraction of candle #2 body (e.g., 0.5 = lower/upper half)

Marker size and padding (in ticks)

Retain markers for last N bars

Alerts

“3C Long Entry” and “3C Short Entry” fire on bar close when the full three-candle pattern is confirmed.

How to use

Pick your reference. For manual levels, enable the draggable line and place it at your area (PD value area edge, key level, etc.).

Trade the first clean signal that forms around that reference, ideally confluencing with structure/flow (VWAP, prior day levels, liquidity pools).

Manage risk below/above the retest candle or the reversal candle, not the approach candle.

Tips

Works best after impulsive moves into a level, not in the middle of chop.

Tighten the min body % to avoid weak reversals on slow sessions.

On highly volatile alts, increase the retest fraction (e.g., 0.6–0.7) to demand a deeper retest.

Notes

This is an execution pattern, not a complete system. Add your own higher-timeframe bias and risk rules.

Nothing here is financial advice. Use position sizing and stops.