Reversal - RSI Divergence + WPR Timing Engine

The Reversal - RSI Divergence + WPR Timing Engine indicator is a multi-engine reversal detection system that combines RSI Divergence analysis with a triple Williams %R timing framework to identify high-probability turning points. It uses real-time multi-confluence scoring to grade setups into distinct quality tiers, helping traders distinguish between minor pullbacks and significant market reversals.

Usage

The indicator provides visual entry labels and exit dots directly on the chart based on two primary engines:

• Entry Signals: When the RSI Divergence engine and the WPR Timing engine align, a signal label appears. These are categorized into S-Tier (High Confidence), A-Tier (Medium Confidence), and B-Tier (Standard Confidence).
• Divergence Visuals: Automatic lines connect price pivots to RSI pivots, providing immediate visual confirmation of the structure.
• Exit Logic: Small dot markers appear when the system detects counter-trend momentum building (WPR Exhaustion) or when an opposing signal is generated.

Traders can use the live dashboard to monitor current RSI values, three different WPR timeframes, and a real-time confidence score for both bullish and bearish directions.

Details

The script operates on a dual-engine architecture:

1. Engine 1 (RSI Divergence): Scans for four types of divergence: Regular Bullish/Bearish (exhaustion) and Hidden Bullish/Bearish (trend continuation).
2. Engine 2 (Triple WPR): Uses three Williams %R oscillators (Fast, Medium, and Slow) to confirm momentum. The Fast WPR handles timing, while Medium and Slow filters ensure macro alignment.

The confidence scoring engine evaluates eight factors, including divergence quality, WPR penetration depth, velocity, and volume spikes. Each factor adds to a total percentage score, which must exceed the user-defined "Min Confidence %" for a signal to fire.

Settings

RSI Divergence

• RSI Period: Sets the length for the base RSI calculation.
• RSI Pivot Lookback: Adjusts how sensitive the pivot detection is for divergence.
• Max/Min Divergence Width: Defines the bar range between two pivots to qualify as a valid divergence.

WPR Timing

• WPR Periods (Fast/Med/Slow): Configures the three internal oscillators used for momentum filtering.
• WPR Extreme Levels: Sets the overbought and oversold thresholds.

Signal Filters

• Min Confidence %: The minimum calculated score required to display a signal label.
• Signal Cooldown: The minimum number of bars required between consecutive signals to prevent whipsaw noise.
• Require Volume Confirm: When enabled, signals only fire if volume exceeds a specific ratio of the moving average.

FAQ

How do I interpret the S/A/B labels? These represent signal tiers based on confidence scores. S-Tier signals (70%+) have the highest confluence of factors, while B-Tier signals (35-54%) meet the minimum requirements for a valid setup.

Can I use this for trend continuation? Yes, the indicator detects "Hidden" divergences, which typically represent pullbacks within an established trend, allowing for continuation entries.

How can I access Reversal - RSI Divergence + WPR Timing Engine? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.