Stop Run Reversal Planner

The Stop Run Reversal Planner indicator provides a structured framework for identifying and evaluating wick sweeps around recent range extremes to determine reversal readiness. It converts complex price action and volume data into a 0-100 readiness score, helping traders distinguish between simple liquidity grabs and high-probability reversal contexts with clear risk and target parameters.

Usage

The Usage section describes how the script can be used to plan reversals after liquidity runs. The indicator tracks price movement relative to recent highs and lows to detect stop runs.

• Identifying Context: When price sweeps a prior high or low and closes back within the range, the script plots a "Stop-Run Wick Zone."
• Confirmation States:
  • Watch: A sweep has occurred, but price has not yet met the criteria for a confirmed reversal.
  • Confirmed: Price has reclaimed the reference level with sufficient candle quality, volume, and target room.
• Planning Tools: Once confirmed, the tool draws a "Reclaim Rail" (entry reference), an "Invalidation Guide" (stop reference), and "Target Bands" (potential exit areas).
• AGPro Panel: The on-chart panel provides a real-time summary of the current stop-run state, reclamation quality, and the overall readiness score.

Details

The script utilizes a multi-factor scoring model to evaluate the quality of a reversal. This includes:

• Wick Sweep Quality: Measuring the depth of the run relative to the ATR.
• Reclaim Behavior: Checking how decisively price closed back inside the swept reference.
• Candle Confirmation: Evaluating the body efficiency and close location of the follow-through candle.
• Volume Response: Scoring participation during the reversal attempt relative to a volume baseline.
• Target Room: Calculating the distance to the opposite side of the range or an ATR-based fallback to ensure a viable reward-to-risk ratio.

Settings

Stop-Run Reversal Engine

• Stop-Run Reference Lookback: Sets the lookback period used to identify the recent high/low range for sweep detection.
• ATR Length: Defines the ATR period used for calculating sweep depth, zone heights, and invalidation buffers.
• Sensitivity: Adjusts the selectivity of wick-sweep detection (Aggressive, Balanced, or Conservative).
• Confirmation Mode: Determines the strictness of the confirmation candle requirements.
• Confirmation Window Bars: Limits how many bars the script waits for a confirmation after a sweep occurs.

Readiness Score

• Minimum Reversal Score: The threshold (0-100) required to trigger a "Confirmed Reversal" status.
• Stop-Run Watch Score: The threshold required to display an initial "Watch" label.

Risk / Target Logic

• Target Room ATR Fallback: Sets a target distance when the opposite range extreme is not applicable.
• Invalidation Buffer ATR: Adds a buffer beyond the sweep extreme for the invalidation line.

Visuals & Labels

• Show Stop-Run Zones: Toggles the visibility of the shaded wick zones.
• Label Text Mode: Switches between "Compact" and "Detailed" labels (detailed includes scores and grades).
• Forward Render Bars: Controls how many bars into the future the guide rails extend.

FAQ

How do I interpret a low Readiness Score? A low score (below the minimum reversal score) indicates that while a sweep occurred, the follow-through, volume, or target room is insufficient to meet the script's criteria for a high-probability reversal.

What causes a reversal to be "Invalidated"? A reversal context is invalidated if price crosses the designated invalidation guide (the sweep extreme plus a buffer) before reaching the target band.

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