//@version=5
strategy("Simplest Range & Swing Reversal Strategy 2026", overlay=true, initial_capital=10000, default_qty_type=strategy.percent_of_equity, default_qty_value=10)

// Strategy Inputs
rr_ratio        = input.float(2.0, title="Risk to Reward Ratio", minval=1.0, step=0.1)
swing_lookback  = input.int(20, title="Swing High/Low Lookback Bars", minval=5)
level_tolerance = input.float(0.3, title="Level Tolerance (%)", minval=0.0, step=0.1) / 100.0

// Previous Day Levels (Range High & Range Low)
pdh = request.security(syminfo.tickerid, "D", high[1], lookahead=barmerge.lookahead_on)
pdl = request.security(syminfo.tickerid, "D", low[1], lookahead=barmerge.lookahead_on)

// Swing Levels
swing_high = ta.highest(high, swing_lookback)[1]
swing_low  = ta.lowest(low, swing_lookback)[1]

// Visual Plotting of Key Levels
plot(pdh, title="Previous Day High (PDH)", color=color.red, linewidth=2, style=plot.style_line)
plot(pdl, title="Previous Day Low (PDL)", color=color.green, linewidth=2, style=plot.style_line)
plot(swing_high, title="Swing High", color=color.orange, linewidth=1, style=plot.style_line)
plot(swing_low, title="Swing Low", color=color.teal, linewidth=1, style=plot.style_line)

// Proximity Detection logic
is_at_resistance(price) =>
    (math.abs(price - pdh) / pdh <= level_tolerance or price >= pdh) or 
    (math.abs(price - swing_high) / swing_high <= level_tolerance or price >= swing_high)

is_at_support(price) =>
    (math.abs(price - pdl) / pdl <= level_tolerance or price <= pdl) or 
    (math.abs(price - swing_low) / swing_low <= level_tolerance or price <= swing_low)

at_resistance_setup = is_at_resistance(high[1])
at_support_setup    = is_at_support(low[1])

// Signal Conditions
// Bullish Reversal: Previous bar touched/tested support and closed bullish, current bar breaks above setup bar's high
bullish_setup   = at_support_setup and close[1] > open[1]
long_trigger    = bullish_setup and close > high[1] and strategy.position_size == 0

// Bearish Reversal: Previous bar touched/tested resistance and closed bearish, current bar breaks below setup bar's low
bearish_setup   = at_resistance_setup and close[1] < open[1]
short_trigger   = bearish_setup and close < low[1] and strategy.position_size == 0

// Variables to store SL
var float long_sl  = na
var float short_sl = na

// Trade Execution Logic
if long_trigger
    long_sl := math.min(low[1], low)
    entry_price = close
    risk = entry_price - long_sl
    if risk > 0
        tp = entry_price + (risk * rr_ratio)
        strategy.entry("Long", strategy.long)
        strategy.exit("Exit Long", "Long", stop=long_sl, limit=tp)

if short_trigger
    short_sl := math.max(high[1], high)
    entry_price = close
    risk = short_sl - entry_price
    if risk > 0
        tp = entry_price - (risk * rr_ratio)
        strategy.entry("Short", strategy.short)
        strategy.exit("Exit Short", "Short", stop=short_sl, limit=tp)