Reversal Threshold
Number of opposite-direction rounds (1-10) needed to confirm trend reversal
Definition
Reversal Threshold determines how many consecutive rounds moving in the opposite direction are required before AI confirms that a trend has reversed. This prevents premature reaction to single anomalies. For example, if there's an upward trend but 1-2 low multipliers appear, that might be noise, not a reversal. The threshold sets how many consecutive opposite signals are needed to declare 'the trend has changed direction.' Higher thresholds mean more confidence required before declaring reversal, reducing false alarms but potentially reacting late.
Example
Upward trend in progress (avg 3.5x). Reversal threshold = 3. Rounds: 1.8x (1 low), 4.2x (back up - counter resets), 1.6x (1 low), 1.4x (2 consecutive low), 1.7x (3 consecutive low) = REVERSAL CONFIRMED. AI now treats it as downward trend. If threshold was 5, would need 5 consecutive lower-than-average rounds before declaring reversal.
💡Strategy Tip
Recommended settings: Sensitive (2-3 rounds) - quick reversal detection, catches changes early, Moderate (3-4 rounds) - balanced approach, most reliable, Conservative (5-6 rounds) - only confirms after strong evidence, avoids false reversals. Start with 3, increase if you notice too many false reversal signals.