OPEN-SOURCE SCRIPT
Smart Reversal [Scalping-Algo]
════════════════════════════════════════════
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
════════════════════════════════════════════
════════════════════════════════════════════
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
════════════════════════════════════════════
════════════════════════════════════════════
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que la republicación del código está sujeta a nuestras Normas internas.
Get exclusive indicators & Alerts: scalping-algo.com
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como asesoramiento o recomendaciones financieras, de inversión, de trading o de otro tipo proporcionadas o respaldadas por TradingView. Más información en Condiciones de uso.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que la republicación del código está sujeta a nuestras Normas internas.
Get exclusive indicators & Alerts: scalping-algo.com
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como asesoramiento o recomendaciones financieras, de inversión, de trading o de otro tipo proporcionadas o respaldadas por TradingView. Más información en Condiciones de uso.