Reversal Master

Getting started#

1. 1
   Open TradingView and click Indicators

   Search for "Reversal Master SimpleAlgo" in the Community scripts tab.
2. 2
   Add Reversal Master to your chart
3. 3
   Keep the defaults

   Defaults suit intraday and swing charts. Very short timeframes may want longer momentum smoothing.
4. 4
   Add alerts if you want them

   Set them to "Once per bar close".

What you see on the chart#

• Reversal bands: three tiers above and below price showing how far it has stretched from normal.
• Ready tags: momentum has entered an extreme. Nothing has turned yet.
• Reversal signals: a ▲ or ▼ when momentum leaves an extreme, marked Strong when price reached the outer bands during the move.
• Trend candles: coloured by the angle of the trend, fading to grey in flat markets.

How it works#

Bands#

The centre is an exponential average of typical price. Band distance is measured in a volatility unit blending standard deviation and ATR, lightly smoothed. The first band sits at the chosen distance, the second 0.75 units further, the third 1.5 units further.

Momentum#

Signals use the Relative Volatility Index, from 0 to 100. Above the high level (80) upside pressure is stretched; below the low level (20) downside pressure is.

Ready and signal#

When momentum enters an extreme, a Ready tag appears and the script tracks how far price reaches into the bands. When momentum leaves the extreme, a ▼ (from the high side) or ▲ (from the low side) prints. If price reached at least the second tier while momentum was extreme, it's marked Strong.

Trend candles#

The slope of a linear regression line is measured in ATR and converted to an angle. Steeper up shades candles toward the up colour, steeper down toward the down colour, flat fades to grey. Down candles inside a trend use a darker shade so candle direction stays visible.

How to use it#

• Read the stretch first. Price in the outer tiers means the move is extended. That's context, not a signal on its own.
• Ready means watch. Momentum is at an extreme, but nothing has turned.
• The signal is the turn. Strong signals came after a bigger stretch and are the ones most traders focus on.
• Use the candles for the bigger picture. Counter-trend signals against a steep candle colour deserve more caution than signals once candles have faded to grey.
• Shorter momentum settings react faster and print more often. A larger band distance makes Strong rarer.

Settings#

Alerts#

• Buy-side reversal and Sell-side reversal, on bar close, with Strong noted in the message.
• Ready: buy side and Ready: sell side.

Set alerts to "Once per bar close".