Half-Retracement Reversal Detector
By LuxAlgoJun 20, 2026
Half-Retracement Reversal Detector is an indicator on Vela, our next-generation charting platform, written in Pine Script®.
Half-Retracement Reversal Detector finds the harmonic structure known as the 5-0®, whose reversal zone sits at a 0.50 retracement of its last leg. Confirmed swings assemble the 0-X-A-B-C sequence: an initial swing into X, an AB leg reaching 1.13–1.618 of XA beyond X, a BC leg stretching 1.618–2.24 of AB, then a D zone projected at BC's 0.50 retracement, the number the pattern is named for. Each structure draws its legs, points and ratios, and boxes the D zone.
How to Trade with the Half-Retracement Reversal Detector?
- Completion: price trading into the D zone completes the pattern, the risk-defined entry area.
- Reaction: a close back in the BC direction while the zone holds, the confirmation read.
- Invalidation / target: a decisive close through the Invalidation Retracement voids the setup; the dotted line at the C extreme marks the objective.
Completions inside the pivot confirmation lag are back-filled; a projection is dropped as stale once price runs beyond C without touching the zone. Like the rest of the harmonics family, it is a reversion structure: trade the measured zone, not a prediction.
Half-Retracement Reversal Detector Settings
- Swing Length (default 8): pivot length for the swings forming 0 through C; larger finds larger, rarer structures.
- AB / XA Range (default 1.13 to 1.618): AB's allowed extension of XA; AB must travel beyond X.
- BC / AB Range (default 1.618 to 2.24): BC's allowed extension of AB.
- Invalidation Retracement (default 0.618): the BC retracement whose decisive close invalidates the D zone.
- Reciprocal AB=CD Check (default on) with Reciprocal Tolerance % (default 15): requires the projected CD leg to roughly equal AB.
- Require C Beyond Point 0 (default off): demands BC break the pattern origin before the zone is trusted.
- Display toggles: Point Labels, Ratio Labels, Target Line and Show Swings (all on by default).
Frequently Asked Questions
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