CSS Reversal - VA

This indicator identifies a price action reversal pattern known as CSS (Candle Stop Setup). Unlike standard 3-candle patterns, this logic is dynamic and "hunts" for the true peak or valley before confirming a shift in momentum.

Core Logic & Rules

The script follows a specific sequence of "Initiation, Waiting, and Triggering" to ensure it captures high-probability reversals:

1. Initiation (The Sweep): The process starts when a candle (the Pivot) sweeps the liquidity of the previous candle.

Bearish: Candle 2 makes a higher high than Candle 1.

Bullish: Candle 2 makes a lower low than Candle 1.

2. Identifying the Extreme: The script tracks the absolute highest high (for bearish) or lowest low (for bullish) during the setup. If a subsequent candle goes higher/lower without triggering a close, the "mark" moves to that new extreme candle.

3. The Waiting Room (Inside Bars): The setup remains active even if several candles follow that do not break out of the Pivot's range. The script can wait indefinitely (e.g., 3, 4, or 5+ candles) as long as the original extreme is not breached.

4. The Trigger (The Confirmation): A signal is only confirmed when a candle closes past the opposite side of the extreme candle's body.

Bearish Trigger: A candle closes below the Low of the highest candle.

Bullish Trigger: A candle closes above the High of the lowest candle.

5. Retrospective Marking: Once the trigger close occurs, the script automatically places a visual marker (arrow) on the actual extreme candle (the peak or valley), even if that candle occurred several bars ago.

Visual Indicators

Red Arrow (↓): Placed at the high of the highest candle in a confirmed bearish reversal.

Green Arrow (↑): Placed at the low of the lowest candle in a confirmed bullish reversal.

Use Cases

This script is designed for traders who look for Liquidity Sweeps and Market Structure Shifts. It filters out "fake" reversals where price merely wicks past a level without a solid closing confirmation, and it specifically accounts for "inside bar" periods where price consolidates before making its move.