indicators: Bollinger Bands/ standard inputs.
Moving average/ 5 linear weigheted applied to high and 5 linear weighted applied to low.
Same rules as yours Harry with a little difference:
This is for sells, just reverse for buys.
1: wait for 5 lw moving average high to go out of the top BB. (this is referred to as “extreme” meaning the price is at an extreme so there is possibility of reverse in market)
2: we wait for a bullish candle to close and than a bearish candle to close with its high higher than the last 5 candles.(this is per your rules but I will add one more filter)
3: now we wait for the next candle(the 3rd candle) to close. The 3rd candle must be a bearish candle as well and its high must be lower than the previous bearish candles high. Preferrably much lower.
4: we go short at the open of the 4th candle, Our sl is at the high of the 2nd(bearish) candle.
Our take profits:
1: 1 to 1 RR
2: 1 to 2 RR
3: tp at the touch of 5 lw moving average low.
4: tp at the touch of mid BB
5: trail your sl as you wish.
P.S. If you want to be picky add another filter: The second bar(the bearish signal bar) must have more than 50% of its body above top BB.
By adding this extra filter I think we can take trades where the signal bar could be a bullish candle as well not only bearish(this is for sells)