PayBack.pine

//@version=5
indicator(title="PayBack", shorttitle="PayBack v1.0", overlay=true, max_bars_back=1000, max_lines_count=500, max_labels_count=500, max_boxes_count=500)

emaLength = input.int(21, "EMA Length", group="Basic Settings")
useKAMA = input.bool(false, "Use KAMA instead of EMA", group="Basic Settings")
prevCandles = input.int(3, "Lookback Candles", group="Basic Settings")
bOnlyWicks = input.bool(true, "Only Use Wicks", group="Basic Settings")
bReqPSAR = input.bool(false, "Only When PSAR Agrees", group="Basic Settings")
bReqMACD = input.bool(false, "Only When MACD Agrees", group="Basic Settings")

[macdLine, signalLine, histLine] = ta.macd(close, 12, 26, 9)
macdUp = macdLine > signalLine
macdDown = macdLine < signalLine

psar = ta.sar(0.02, 0.02, 0.2)
sarUp = psar < low 
sarDown = psar > low 

bool bWicked = false
bool bCrossed = false

bGreen = open[1] < close[1]
bRed = open[1] > close[1]
ema = ta.ema(close, emaLength)
bWickFromAbove = (low[1] <= ema and open[1] > ema and bGreen) or (low[1] <= ema and close[1] > ema and bRed)
bNextHigher = high > high[1]
if (bReqMACD and macdDown) or (bReqPSAR and sarDown)
    bNextHigher := false
bWickFromBelow = (high[1] > ema and close[1] < ema and bGreen) or (high[1] > ema and open[1] < ema and bRed)
bNextLower = low < low[1]
if (bReqMACD and macdUp) or (bReqPSAR and sarUp)
    bNextLower := false

bPrevCandlesHigher = true
bPrevCandlesLower = true

if bOnlyWicks
    for i = 2 to prevCandles
        if open[i] < ema or close[i] < ema
            bPrevCandlesHigher := false
        if open[i] > ema or close[i] > ema
            bPrevCandlesLower := false
else
    for i = 3 to prevCandles
        if open[i] < ema or close[i] < ema
            bPrevCandlesHigher := false
        if open[i] > ema or close[i] > ema
            bPrevCandlesLower := false

plotchar(bWickFromAbove and bNextHigher and bPrevCandlesHigher ? 1 : na, char="👆", location=location.belowbar, color=color.lime, size=size.tiny, offset=-1)
plotchar(bWickFromBelow and bNextLower and bPrevCandlesLower ? 1 : na, char="👇", location=location.abovebar, color=color.red, size=size.tiny, offset=-1)

alertcondition(bWickFromAbove and bNextHigher and bPrevCandlesHigher, title="PayBack Alert", message="{{exchange}}:{{ticker}} {{interval}} wick pullback")