Strong Pinbar Reversals MTF

The Strong Pinbar Reversals MTF indicator automatically identifies and ranks high-probability reversal opportunities by analyzing clusters of institutional pinbar rejections across multiple timeframes. It utilizes a multi-factor power-ranking system to evaluate the quality of reversal zones, helping traders filter market noise and focus on high-conviction structural shifts.

Usage

The tool identifies "clusters" of pinbars rather than single candles to ensure institutional absorption is present. Users should focus on zones with a strength score of 7/10 or higher for the highest probability setups.

• Reversal Zones: Visual boxes are drawn on the chart where clusters are detected. Bullish zones appear at local price lows, while bearish zones appear at local price highs to ensure proper context.
• Strength Coloring: Zones are dynamically colored based on their power rank; darker, more saturated colors indicate stronger rejection clusters.
• MTF Dashboard: A comprehensive table displays the latest reversal status across seven timeframes (M1, M5, M15, M30, H1, H4, D1), providing a bird's-eye view of market sentiment and alignment.
• Trade Execution: When a signal is generated, the indicator can display suggested Entry, Stop Loss (SL), and Take Profit (TP) levels based on ADR (Average Daily Range) multipliers.

Details

The script uses a 5-dimensional algorithm to calculate a strength score from 0 to 10. This algorithm assesses:

• Cluster Size: The number of pinbars within the lookback window.
• Wick Purity: The ratio of the wick to the total candle range.
• Candle Momentum: The size of the candle relative to the ATR.
• Time Density: How closely the pinbars are grouped together.
• Context Filter: It specifically filters for bullish rejection at support and bearish rejection at resistance to eliminate false signals during mid-range consolidation.

Settings

Pinbar Detection

• Min Wick % of Range: The minimum percentage of the candle that must be a wick (Default 62%).
• Min Pins in Cluster: The minimum number of qualifying pinbars required to form a zone.
• Cluster Window (bars): The lookback period used to scan for pinbar clusters.
• Min Strength to Display: Filters out weak signals below a specific power-ranking score.

Zone Display

• ADR Period (zone height): The lookback period for calculating zone height based on volatility.
• Zone Height % of ADR: Controls the vertical thickness of the reversal boxes.
• Extend Left/Right: Adjusts the horizontal visual extension of the zones on the chart.

SL / TP

• Show SL / TP Lines: Toggles the visibility of suggested exit levels.
• ADR Multipliers: Set the distance for Stop Loss and Take Profit levels relative to market volatility.

FAQ

How do I use the dashboard for confluence? Look for "Alignment" where a lower timeframe cluster occurs within or near a higher timeframe reversal zone. This multi-timeframe confirmation often leads to higher-quality trade setups.

What assets does this work best on? It is designed for high-liquidity assets like Gold (XAUUSD), major Forex pairs, Indices, and large-cap Cryptocurrencies where institutional "wicking" is common.

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