How to Use the TPR Indicator More Effectively

How to Use the TPR Indicator More Effectively

Let’s explore how to apply two different sets of parameters to the same candlestick chart. This approach can help us better identify trends. All the illustrations below are taken from the TradingView version of the “Trend Pullback Reversal” (TPR) indicator. The setup method for the TPR indicator is essentially the same across other platforms.

First, select the time frame you use most frequently—such as the 5-minute chart. In this example, we will use the 5-minute chart for demonstration purposes. You can also use any type of chart, such as tick, Renko, range, weekly, or monthly charts.

The first set of parameters will be based on a relatively short-term period, as shown in the image below.

The 2nd set of parameters will be based on a relatively long-term period, as shown in the image below.

The indicator using the first set of parameters will be applied to the main chart, while the indicator using the second set of parameters will be applied to the sub-chart.

From this image, we can see that the TPR indicators based on short-term and long-term parameter sets give different trend signals on the same 5-minute candlestick. This is precisely the essence of multi-timeframe comparison. Below, we will provide a more detailed technical analysis based on the two turning points marked in the chart (Points 1 and 2).

From the chart below, we can see that we continue to use the dual-parameter of the TPR indicator — the main chart displays the short-term TPR, while the sub-chart displays the long-term TPR. Compared to the previous chart, the current trend signals are clearly more bullish. The following is a detailed technical analysis:

Current Trend Assessment: Bullish Trend Confirmed

🔹 Sub-Chart (Long-Term) TPR:

• The indicator turns from red to green starting in the middle of the chart and continues to rise steadily without switching back to red, indicating that the medium-term trend has shifted from bearish to bullish in a stable manner.

• It remains within an upward channel, suggesting that the market is in a trending upward phase — a medium-term bullish signal.

🔹 Main Chart (Short-Term) TPR:

• The signals are more responsive and have switched multiple times, but in the later part (especially on the right side), it turns green in sync with the sub-chart. This kind of synchronized upward movement indicates the market has confirmed a breakout from the consolidation zone and has entered a new bullish phase.

🔍 Structural Analysis: Breakout from Consolidation, Entering Trend Phase

• In the left-middle part of the chart, frequent red-green alternation in the main chart and sideways price action indicate a base-building phase.

• In the mid-right area, a false breakdown is followed by a sharp rebound (a V-shaped reversal). The short-term TPR turns green first, followed by the long-term TPR — forming a dual-timeframe bullish resonance, marking the official start of an upward trend.

• At the far right, a strong bullish candle appears on increased volume. Although this could be a short-term top, as long as the TPR (especially the long-term one) does not turn red, this is likely just a normal pullback within a larger bullish trend.

🎯 Multi-Period Resonance Strategy Recommendations

✅ Entry Strategy:

• Confirmed Signal Entry (Conservative): When both short- and long-term TPR turn green and price breaks above the previous consolidation zone (around 6,020), this can be seen as a confirmed breakout signal — a suitable point to enter long.

• Aggressive Entry (Speculative): If the short-term TPR turns green at a low level while the long-term TPR is still red, and this is accompanied by bullish candlestick patterns (e.g., bullish engulfing, V-reversal), you may try a small position in anticipation of the long-term TPR catching up.

⛔ Stop-Loss Strategy:

• If, after entry, the short-term TPR quickly turns red and price falls back below the previous consolidation zone, you should consider exiting to avoid a bull trap.

• A more conservative approach is to use the long-term TPR turning red as a trend-based stop-loss trigger.

🧠 Take-Profit Strategy:

• You can take partial profits near previous highs or psychological resistance levels (e.g., round numbers), combined with candlestick signals (like long upper wicks with high volume).

• If the long-term TPR remains green and continues rising, consider using a trailing stop based on TPR value pullbacks to ride the trend.

📊 Key Technical Feature Summary

📌 Summary

• The current market phase is a textbook case of “consolidation → breakout → trending up”, and the dual-timeframe TPR strategy is performing excellently.

• The bullish structure remains intact. As long as the long-term TPR stays green, dips can still be considered as buying opportunities.

• If the short-term chart pulls back but the long-term trend remains unchanged, it could be a good entry point during the correction.

🧠 Application Approach for Multi-Period TPR Strategy

✅ Confirm the Primary Trend:

• Start with the long-term TPR to determine the overall direction — bullish or bearish.

🎯 Identify Entry/Exit Points:

• When the short-term TPR aligns with the long-term TPR (both bullish or both bearish), signal strength is at its peak — consider entering in the direction of the trend.

🔄 Use Divergence & Structure:

• If there’s a divergence between short- and long-term TPR, and price forms false breakout candles (e.g., hammer, fakeout bearish candles) at key support/resistance, consider a countertrend setup.

⛔ Risk Management – Stop Loss & Partial Take-Profit:

• Short-term stop-loss: place outside recent short-term TPR switching points.

• Mid-term take-profit: use long-term TPR’s resistance/support levels for reference.

🧪 Combine with Other Indicators for Confirmation

• Moving Averages: Add 20/50/100-period MAs to assess whether price is respecting support/resistance zones within the MA ribbon.

• Volume: During a downtrend, increasing volume confirms continuation. If volume drops, watch for a reversal.

• Momentum Indicators: Look for bullish divergence in bearish zones or bearish crossovers at tops in the long-term chart.

🧩 Final Takeaways

• Only follow through aggressively when short- and long-term TPR are aligned.

• Treat multi-period divergence as potential bull/bear traps.

• Combine layered stop-losses, volume, candlestick formations, and moving averages to further improve win rate and trade consistency.

We hope this guide helps you systematically apply the TPR indicator for multi-period, multi-dimensional technical analysis.
Feel free to leave a comment if you’d like to explore any part in more detail!