OPEN-SOURCE SCRIPT
Smart Reversal [Scalping-Algo]
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Smart Reversal [Scalping-Algo]
This indicator identifies potential reversal points using a two-step confirmation method that I developed for my own scalping. Unlike typical reversal indicators that rely on RSI oversold/overbought or simple candlestick patterns, this uses a different approach.
🔹 HOW IT WORKS
The logic is based on two phases:
Phase 1 - Anchor Detection:
The indicator looks for candles where price closes beyond ALL previous candles in the lookback period. For a bullish setup, the close must be below the lows of the last N candles (default 20). This isn't just a "lower low" - it's an extreme extension where price has broken below every single candle in the range. I also require this candle to have above-average volume (2x the 20-period average) to confirm real selling pressure, not just a gap or low-liquidity move.
Phase 2 - Confirmation:
After an anchor forms, I wait for price to reverse and close above the anchor candle's high (for buys) or below the anchor's low (for sells). This must happen within 3 bars. If price makes a new extreme instead, the setup cancels.
🔹 SIGNAL QUALITY SCORING
Each signal gets a score from 3/5 to 5/5:
- 3/5: Basic confirmation occurred
- 4/5: Anchor or confirmation had strong volume
- 5/5: Both volume conditions met + aligned with 200 EMA trend
I focus on 4/5 and 5/5 signals personally.
🔹 WHAT YOU SEE ON CHART
- Green/Red boxes: Active setup waiting for confirmation
- B or S labels: Confirmed signals with quality score
- Dashboard: Shows current status and volume condition
🔹 SETTINGS
- Bars to Check: How many candles for the breakout comparison (default 20)
- Confirmation Window: Bars allowed after anchor for confirmation (default 3)
- Volume thresholds: Adjustable multipliers for anchor (2x) and confirmation (1.2x)
🔹 SUGGESTED USE
- Works on any timeframe, but I use it mainly on 5-15 min charts
- Better results when combined with key support/resistance levels
- Avoid trading during high-impact news
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════════════════════════════════════════════
Smart Reversal [Scalping-Algo]
This indicator identifies potential reversal points using a two-step confirmation method that I developed for my own scalping. Unlike typical reversal indicators that rely on RSI oversold/overbought or simple candlestick patterns, this uses a different approach.
🔹 HOW IT WORKS
The logic is based on two phases:
Phase 1 - Anchor Detection:
The indicator looks for candles where price closes beyond ALL previous candles in the lookback period. For a bullish setup, the close must be below the lows of the last N candles (default 20). This isn't just a "lower low" - it's an extreme extension where price has broken below every single candle in the range. I also require this candle to have above-average volume (2x the 20-period average) to confirm real selling pressure, not just a gap or low-liquidity move.
Phase 2 - Confirmation:
After an anchor forms, I wait for price to reverse and close above the anchor candle's high (for buys) or below the anchor's low (for sells). This must happen within 3 bars. If price makes a new extreme instead, the setup cancels.
🔹 SIGNAL QUALITY SCORING
Each signal gets a score from 3/5 to 5/5:
- 3/5: Basic confirmation occurred
- 4/5: Anchor or confirmation had strong volume
- 5/5: Both volume conditions met + aligned with 200 EMA trend
I focus on 4/5 and 5/5 signals personally.
🔹 WHAT YOU SEE ON CHART
- Green/Red boxes: Active setup waiting for confirmation
- B or S labels: Confirmed signals with quality score
- Dashboard: Shows current status and volume condition
🔹 SETTINGS
- Bars to Check: How many candles for the breakout comparison (default 20)
- Confirmation Window: Bars allowed after anchor for confirmation (default 3)
- Volume thresholds: Adjustable multipliers for anchor (2x) and confirmation (1.2x)
🔹 SUGGESTED USE
- Works on any timeframe, but I use it mainly on 5-15 min charts
- Better results when combined with key support/resistance levels
- Avoid trading during high-impact news
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Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Get exclusive indicators & Alerts: scalping-algo.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Get exclusive indicators & Alerts: scalping-algo.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.