counter trend reversal scan

I need some more details before I can assist you further. I understand Counter Trend. I understand reversal. When I Google the phrase ”counter trend reversal” and end up with hits for one or the other but have not yet found one description of those two events combined. So you are going to have to describe for me exactly what one looks like. Preferably with a screenshot or two.
If I were to try and combine these two into one. My first thought is the formation of positive or negative divergence (counter trend), followed by price action that confirms the divergence signal (reversal). The other thought that comes to mind is when you have RSI or Stochastic reaching overbought conditions in an uptrend. As well as when they reach oversold conditions in a downtrend.
Our site is loaded with scans that have the potential to pick up these patterns. Have you viewed our videos in the scan category? https://www.hahn-tech.com/category/scans-tos/

Hi
It’s a strategy to find a countertrend move in a oversold or overbought stock.
Basically, when a stock is down for a few days (3-5) and every day the price goes lower than previous day’s low. Than the stock goes back up through prior day’s low.
This applies for the opposite as well (when a stock is up for a few days and than reverses down).

Ok, sounds like we are starting to get some specifications here. So far I understand you want the pattern to consist of 3-5 consecutive closes below the previous bar’s low followed by a single close above the previous low. Then you seem to want some sort of lower study that shows oversold/overbought (you haven’t mentioned which one yet?). So what other specifications do you have? Please assume I don’t have a clue what this pattern looks like and provide all the details upfront.

Hi Pete,

Reviving this thread from the grave. This pattern is called the red dog reversal and I’m looking to improve my TOS scan for this.

The pattern is 3+ down bars and the reversal candle is when a new low is made but then price reverses and trades above the previous bar’s low. Would love to see a scan that alerts when the criteria is met and price is approaching or breaking that prior bar low.

Was wondering if you can help out with this?

Thanks!