Guide
How does the 3C Reversal Filter v1 strategy work ?
The 3C Reversal Filter v1 is a trading strategy that uses advanced technical indicators to facilitate trend detection and short-term momentum identification. The strategy focuses on understanding price movements through various calculations:
- Step 1: Analyses price movement by considering factors like Average True Range (ATR), percentage change, and standard deviation.
- Step 2: Uses a Simple Moving Average (SMA) to get a smoothed price.
- Step 3: Computes the absolute value of the change from one bar to the next.
- Step 4: Refines the data by applying an Exponential Moving Average (EMA) twice to the results of Step 3.
- Step 5: Creates a slow trailing line by multiplying the Step 4 output by the Fibonacci-based value of 1.618 (alternative values like 2.618 or 4.236 can also be used).
For automated trading, the strategy integrates with 3 commas bots. Traders can set up both LONG and SHORT bots, input the corresponding bot ID and token address in the strategy's settings, and use a specific webhook URL in conjunction with the placeholder {{strategy.order.alert_message}} for alert messages.