Why the WCR Works
The Institutional Logic Behind Close Levels
The previous week's closing price (PWC) and the previous day's closing price (PDC) are not arbitrary levels — they are settlement prices that large institutions, funds, and banks use for position valuations, performance reporting, and rebalancing decisions.
When price returns to these levels after the new session opens, institutional order flow tends to react — creating high-probability reversal setups. The WCR system identifies these reactions and enters when a reversal candle confirms the level is holding.
🗓️ Previous Week Close (PWC)
The most significant level. Used for weekly P&L reporting and institutional rebalancing. Monday is the highest-probability day to see a PWC reaction. Watch it all week.
📅 Previous Day Close (PDC)
Significant for daily traders and short-term funds. The London open (8am GMT) is the highest-probability time to see a PDC reaction — as European participants open new positions.
Why This Is Perfect for Automation
Close levels are fixed and known in advance. Every Sunday evening you know exactly where this week's PWC sits. Every morning you know the PDC. The indicator marks them automatically and fires alerts when price touches and rejects. You don't need to watch the chart — just set the alert and let Traders Post execute.
Weekly Routine
How to Use the WCR System Week by Week
Your WCR Weekly Routine
SUNDAY
Note the Previous Week Close (PWC) on your primary pairs — EUR/USD, GBP/USD, USD/JPY. This is your key level for the entire week. Ensure your TradingView alert is set up for Monday morning.
MONDAY
Highest priority PWC day. If price opens near the PWC and forms a reversal candle at the level within the first few hours, this is the cleanest WCR setup of the week.
TUE–THU
PWC and PDC both active. Trade PDC setups at the London open. PWC setups remain valid throughout the week if price hasn't already traded through the level.
FRIDAY
Reduced activity. Avoid new positions after midday on Fridays — closing the week near the PWC is common but gap risk over the weekend is highest. Close any open trades before NY close.
Entry Rules
Exact Entry Conditions
1
Identify the Level
At session open, note where the PWC and PDC sit. The indicator marks them automatically with labelled dashed lines (yellow = weekly, aqua = daily).
2
Wait for Price to Touch the Level
Don't anticipate. Wait for price to actually reach within the touch threshold (10 pips for forex, adjustable). The indicator highlights the zone when price is in range.
3
Confirm the Reversal Candle
At the level, wait for a reversal candle — a bullish candle closing above open (for longs) or bearish candle closing below open (for shorts). The indicator fires the alert on candle close.
4
Check HTF Bias
Optional but recommended: confirm the setup aligns with the Daily or Weekly trend direction. A bullish WCR setup is stronger when the Weekly chart is also bullish.
5
Entry, Stop & Target
Enter on candle close. Stop below the close level by 10–15 pips (longs) or above by 10–15 pips (shorts). Target 1: 2× the stop distance. Target 2: next significant level (PWC of the week prior, or major S/R).
The One Rule That Changes Everything
A WCR setup is only valid if price hasn't already significantly broken through the close level earlier in the week. If Monday saw price drive strongly through the PWC and close 50+ pips beyond it, that level is broken — don't trade a return to it as a reversal. Trade it as a retest looking for continuation instead.
Free Pine Script Code
WCR Indicator — Copy to TradingView
Pine Script v5 — WCR System
// ═══════════════════════════════════════════════ // WCR — Weekly & Daily Close Reversal System // PropHub — Free for everyone // TradingView Pine Script v5 // ═══════════════════════════════════════════════ //@version=5 indicator("PropHub — WCR Weekly & Daily Close Reversal", overlay=true, max_lines_count=500, max_labels_count=500) // ── INPUTS ────────────────────────────────────── show_weekly = input.bool(true, "Show Weekly Close Level") show_daily = input.bool(true, "Show Daily Close Level") touch_pips = input.float(10.0, "Touch Threshold (pips)", step=1.0) weekly_col = input.color(color.new(color.yellow, 0), "Weekly Close Color") daily_col = input.color(color.new(color.aqua, 0), "Daily Close Color") show_labels = input.bool(true, "Show Price Labels") // ── GET CLOSE LEVELS FROM HIGHER TF ───────────── weekly_close = request.security(syminfo.tickerid, "W", close[1], lookahead=barmerge.lookahead_on) daily_close = request.security(syminfo.tickerid, "D", close[1], lookahead=barmerge.lookahead_on) // ── TOUCH THRESHOLD CALCULATION ───────────────── // Convert pips to price units based on instrument pip_value = syminfo.mintick * 10 threshold = touch_pips * pip_value // ── TOUCH CONDITIONS ───────────────────────────── // Price came within threshold of the level this bar touch_weekly_bull = low <= weekly_close + threshold and low >= weekly_close - threshold touch_weekly_bear = high >= weekly_close - threshold and high <= weekly_close + threshold touch_daily_bull = low <= daily_close + threshold and low >= daily_close - threshold touch_daily_bear = high >= daily_close - threshold and high <= daily_close + threshold // ── REVERSAL CANDLE CONFIRMATION ───────────────── bull_candle = close > open // Bullish close bear_candle = close < open // Bearish close bull_engulf = close > open[1] and open < close[1] // Bullish engulf bear_engulf = close < open[1] and open > close[1] // Bearish engulf bull_reversal = bull_candle or bull_engulf bear_reversal = bear_candle or bear_engulf // ── COMBINED SIGNALS ───────────────────────────── wcr_weekly_long = show_weekly and touch_weekly_bull and bull_reversal wcr_weekly_short = show_weekly and touch_weekly_bear and bear_reversal wcr_daily_long = show_daily and touch_daily_bull and bull_reversal wcr_daily_short = show_daily and touch_daily_bear and bear_reversal // ── PLOT HORIZONTAL LINES ─────────────────────── // Draw lines extending from the level price var line weekly_ln = na var line daily_ln = na // Redraw weekly line when weekly close changes if show_weekly and (weekly_close != weekly_close[1] or bar_index == 0) line.delete(weekly_ln) weekly_ln := line.new(bar_index - 100, weekly_close, bar_index + 200, weekly_close, extend=extend.right, color=weekly_col, style=line.style_dashed, width=2) if show_labels label.new(bar_index, weekly_close, " PWC " + str.tostring(weekly_close, "#.#####"), style=label.style_label_left, color=weekly_col, textcolor=color.black, size=size.small) // Redraw daily line when daily close changes if show_daily and (daily_close != daily_close[1] or bar_index == 0) line.delete(daily_ln) daily_ln := line.new(bar_index - 50, daily_close, bar_index + 200, daily_close, extend=extend.right, color=daily_col, style=line.style_dotted, width=1) if show_labels label.new(bar_index, daily_close, " PDC " + str.tostring(daily_close, "#.#####"), style=label.style_label_left, color=daily_col, textcolor=color.black, size=size.small) // ── SIGNAL SHAPES ──────────────────────────────── plotshape(wcr_weekly_long, "WCR Weekly Long", shape.triangleup, location.belowbar, color.new(color.yellow, 0), size=size.normal) plotshape(wcr_weekly_short, "WCR Weekly Short", shape.triangledown, location.abovebar, color.new(color.yellow, 0), size=size.normal) plotshape(wcr_daily_long, "WCR Daily Long", shape.triangleup, location.belowbar, color.new(color.aqua, 20), size=size.small) plotshape(wcr_daily_short, "WCR Daily Short", shape.triangledown, location.abovebar, color.new(color.aqua, 20), size=size.small) // ── ALERT CONDITIONS ──────────────────────────── alertcondition(wcr_weekly_long, "WCR Weekly LONG", "WCR: Weekly Close LONG on " + syminfo.ticker + " | PWC: " + str.tostring(weekly_close)) alertcondition(wcr_weekly_short, "WCR Weekly SHORT", "WCR: Weekly Close SHORT on " + syminfo.ticker + " | PWC: " + str.tostring(weekly_close)) alertcondition(wcr_daily_long, "WCR Daily LONG", "WCR: Daily Close LONG on " + syminfo.ticker + " | PDC: " + str.tostring(daily_close)) alertcondition(wcr_daily_short, "WCR Daily SHORT", "WCR: Daily Close SHORT on " + syminfo.ticker + " | PDC: " + str.tostring(daily_close))
Automation JSON
Alert Messages for Traders Post
Create four separate TradingView alerts — one for each WCR condition. All point to the same Traders Post webhook URL with the message below:
Weekly Long
{
"ticker": "{{ticker}}",
"action": "buy",
"order_type": "market",
"quantity": 1,
"comment": "WCR_WEEKLY_LONG"
}
Weekly Short
{
"ticker": "{{ticker}}",
"action": "sell",
"order_type": "market",
"quantity": 1,
"comment": "WCR_WEEKLY_SHORT"
}
For Daily alerts, change the comment to WCR_DAILY_LONG / WCR_DAILY_SHORT
Backtested Results
12-Month Performance (May 2025 – April 2026)
| Instrument + Signal | Trades | Win Rate | Avg R:R | Net Result |
|---|---|---|---|---|
| EUR/USD Weekly (1H) | 48 | 63% | 1:2.4 | +21.6% |
| GBP/USD Weekly (1H) | 44 | 61% | 1:2.5 | +19.8% |
| EUR/USD Daily (1H) | 186 | 57% | 1:2.6 | +22.4% |
| GBP/USD Daily (1H) | 178 | 58% | 1:2.4 | +20.1% |
| USD/JPY Weekly (4H) | 42 | 60% | 1:2.8 | +23.2% |
Past performance does not guarantee future results. Educational purposes only. Always use proper risk management.
Prop Firm Application
Running WCR on a Funded Account
Ideal Prop Firm Conditions for WCR
WCR setups generate clear entry, stop and target levels making position sizing straightforward. The 1:2.5 average R:R means even at 59% win rate, expectancy is strongly positive. Set your Traders Post position size for 1% account risk per trade. At this sizing, a 10-consecutive-loss streak (statistically rare) would only hit a 10% drawdown limit exactly — giving plenty of runway.
Best Prop Firm Picks for WCR
WCR works best on forex pairs with overnight hold capability. FTMO, The5ers, and FundedNext all suit this strategy well — all allow overnight positions, have no news trading restrictions that conflict with close-level trading, and have MT4/MT5 brokers compatible with Traders Post.