Price Acceptance Reversal Planner

The Price Acceptance Reversal Planner indicator is a chart-first reversal planning tool designed to evaluate when price acceptance outside a fair-value band begins to fail. It provides traders with a structured framework to identify potential reversal contexts by scoring the quality of the price action, risk parameters, and target availability.

Usage

The indicator identifies periods where price has "accepted" values above or below a dynamic fair-value band. When price rotates back through the band's edge, the script evaluates the reversal's potential.

• Reversal Ready Labels: These appear when the script identifies a high-probability reversal setup based on the internal scoring model. Teal labels indicate bullish reversals (failed lower acceptance), while pink labels indicate bearish reversals (failed upper acceptance).
• Planning Zones & Rails: The script plots failed-acceptance zones (boxes) and trigger rails (lines) to mark where the reversal was initiated. It also provides invalidation shelves (risk levels) and target-room guides (potential objectives).
• AGPro Planning Panel: This dashboard summarizes the current acceptance state, the 0-100 reversal readiness score, failure risk, and the suggested next action.
• Watch States: "Upper/Lower Acceptance Watch" markers indicate that price has stayed outside the band long enough to be monitored for a potential failure, though a reversal is not yet confirmed.

Details

The indicator logic is built on four primary pillars:

1. Context Detection: It establishes a dynamic band using an adaptive anchor (EMA) and ATR. Acceptance is defined by price spending a minimum number of bars outside this band.
2. Failure Evaluation: Once acceptance is established, the script monitors for a "close-back" through the band edge. It scores the strength of this close, the quality of the reversal candle, and volume participation.
3. Risk/Reward Mapping: It automatically calculates an invalidation shelf based on the recent extreme (plus an ATR buffer) and identifies target room using the opposite side of the band or an ATR fallback.
4. Selective Scoring: The 0-100 score filters out noisy setups, only highlighting "Ready" states when multiple confluence factors (time, strength, volume, and room) align.

Settings

Acceptance Reversal Engine

• Acceptance Anchor Length: Sets the EMA length for the dynamic fair-value anchor.
• ATR Length: Sets the lookback for ATR-based normalization and volatility calculations.
• Sensitivity: Choose between Responsive, Balanced, or Strict to control how the engine qualifies failure evidence.

Planner Model

• Acceptance Band Width ATR: Determines the width of the fair-value band relative to volatility.
• Minimum Acceptance Bars: The number of consecutive closes required outside the band to establish "acceptance."
• Minimum Reversal Score: The threshold (0-100) required to trigger "Reversal Ready" markers and alerts.

Chart Visuals & Panel

• Show Failure Zones: Toggles the display of the event-based acceptance failure boxes.
• Forward Render Bars: Projects the planning rails and zones into the future for better visibility.
• Panel Location/Theme: Customizes the position and visual style of the dashboard.

FAQ

How do I interpret a "Reversal Ready" signal? It indicates that price has failed its previous acceptance and met the minimum scoring threshold for a reversal plan. It is a structured planning marker, not a guaranteed trade signal.

What does the "Invalidation Shelf" represent? The invalidation shelf is the price point where the current reversal context is considered no longer valid, typically placed just beyond the recent failure extreme.

How can I access the Price Acceptance Reversal Planner? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.