Unchased Wick Detector and Reversals

The Unchased Wick Detector and Reversals indicator tracks unfulfilled liquidity at previous pivot points and identifies potential price reversals when these levels are finally "chased." By visualizing liquidity clusters and subsequent price action, it helps traders spot areas where market participants may have been caught off-balance.

Usage

The tool identifies significant pivot highs and lows and extends a line forward until price interacts with that specific level.

• Unchased Levels: These are displayed as lines (defaulting to the chart's foreground color) extending from previous pivot points that have not yet been revisited by price. These represent protected highs or lows.
• Chased Levels: When price passes through a previous pivot level, the line color changes (defaulting to blue) to indicate the liquidity has been "chased" or swept.
• Reversal Signals: If price interacts with a level and subsequently reverses within a user-defined timeframe, the line changes color again:
  • Green: A sweep of a low followed by an upward reversal.
  • Red: A sweep of a high followed by a downward reversal.

Traders can use these signals to identify "liquidity grabs" where price briefly breaches a support/resistance level before continuing in the opposite direction.

Details

The script utilizes pivot detection logic to find structural highs and lows. Once a pivot is established, its price level is stored. The indicator then monitors every subsequent bar to see if price breaches that level. A "reversal window" is implemented to ensure that the reversal signal is only valid if price returns to the opposite side of the pivot level within a specific number of bars after the breach. This prevents old, irrelevant breaches from triggering stale signals.

Settings

• Pivot detection length: Determines the number of bars on each side required to confirm a pivot high or low.
• Reversal window min/max bar(s) value: Defines the timing constraints (in bars) for a reversal to be considered valid after a level is chased.
• Chased line color: The color used when price breaches a level without an immediate reversal.
• Chased with upward/downward reversal line color: The colors used to highlight successful reversal events.
• Max lookback to find lows or highs: Limits the number of active levels tracked by the script to optimize performance.

FAQ

How do I access Unchased Wick Detector and Reversals?

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

What does the reversal window do?

The reversal window ensures that a signal only appears if the price reverses shortly after hitting the level. For example, if set to 1–5, the reversal must occur within 1 to 5 bars after the wick is chased.

Why do some lines disappear or stop?

Lines stop when they are "chased" by price. The script also has a maximum lookback setting to maintain chart performance, which limits how many historical pivots are tracked simultaneously.