Reversal rehersal v1

The Reversal rehersal v1 indicator is a technical analysis tool designed to identify potential market reversal zones by combining RSI thresholds, candlestick patterns, and Fair Value Gaps (FVGs). This multi-faceted approach aims to output high-probability signals primarily for scalpers operating on low timeframes such as the 1-minute to 15-minute charts.

Usage

The indicator functions by monitoring RSI ranges across two different timeframes to detect building momentum. When price enters these "Shooting" or "Falling" ranges, the script scans for specific price action confluences:

• Candlestick Patterns: It identifies several patterns including Sweeps, Piercing Lines, Harami, Tweezers, Engulfing candles, and Hammers.
• FVG Confluence: The tool checks for the existence of Fair Value Gaps to validate trade setups.
• Scalping Execution: Users typically look for the Green (Buy) or Red (Sell) arrows to enter trades. It is recommended to verify significant imbalance prior to a signal to avoid invalid setups.

Details

The logic incorporates Fair Value Gap detection with advanced management features, such as automatic box adjustments when gaps are partially mitigated and options to cull older boxes to maintain chart clarity. Additionally, the script includes a "No-Trade Zone" feature to suppress signals during specific sessions (e.g., high volatility news events or low liquidity periods) and an "All-Time High" (ATH) visualizer to track price relative to historical peaks.

For strategy refinement, an experimental backtesting table is included. This table tracks theoretical win rates, profit/loss, and trade statistics based on user-defined Take Profit (TP) and Stop Loss (SL) parameters, though it does not account for commission or slippage.

Settings

General

• Long/Short: Filters the type of signals displayed (Long, Short, Both, or None).
• Display signals: Toggles the visibility of buy/sell arrows.
• Wait for confirmation: If enabled, the script waits for the candle to close before triggering a signal.

Patterns

• Candlestick Selection: Dropdown menus to select the strength (Strong/Weak) of various patterns like Sweeps, Engulfing, and Hammers for both long and short directions.

RSI & FVG

• RSI Offsets: Adjusts the threshold for the Shooting/Falling ranges relative to the 50-level.
• Higher Timeframe: Sets the secondary timeframe for RSI momentum checks.
• Enable/Disable FVG's: Toggles the rendering of Fair Value Gaps.
• Cull FVG boxes: Limits the number of bars an FVG box remains visible.

Backtest & Imbalance

• Imbalance Threshold: Filters signals based on a minimum percentage of price imbalance.
• Take profit method: Choose between Fixed values or specific Fibonacci retracement levels for TP calculation.
• Stop loss: Sets a fixed distance for stop-loss calculations in the backtest.

FAQ

How do I interpret the different signal colors? Strong signals are displayed with solid colors, while weak signals use a higher transparency. You can adjust these colors in the General settings group.

Can I use this for swing trading? While designed for 1-15 minute scalping (specifically tested on the DE40 index), the settings are fully adjustable. You should use the backtesting table to verify performance on higher timeframes.

How do I access Reversal rehersal v1? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.