# Reversal Probability Zone & Levels Statistical zones that estimate where and when the next reversal is likely, projected from the last detected swing along both price and time axes. Up to four configurable percentile levels rank past reversals, with bullish and bearish swings sampled separately. Built for traders who want reversal odds grounded in history rather than guesswork. - Indicator in the LuxAlgo Library, by LuxAlgo, published Feb 12, 2025. - Access: free. - Concepts: [Reversal](https://www.luxalgo.com/library/concept/reversal/) (primary), [Percentile Rank](https://www.luxalgo.com/library/concept/percentile-rank/) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cmpwn59q6007fvhsg7hayjz5c - Page: https://www.luxalgo.com/library/indicator/reversal-probability-zone-levels/ **Reversal Probability Zone & Levels** projects a probability zone from the last detected swing, estimating where, and when, the next [reversal](https://www.luxalgo.com/library/concept/reversal/) is statistically likely. Past swings are ranked along both price and time axes, and up to four percentile levels (25th, 50th, 75th, and 90th by default) mark how far and how long previous moves ran before turning. Bullish and bearish reversals are sampled separately, so if the last pivot was a swing high, the zone is built strictly from comparable cases. A Normalize Data option swaps raw prices for returns between swings, keeping zones comparable across regimes and higher timeframes. ## How to Trade the Reversal Probability Zone & Levels? - **Price reaches a percentile level**: each level marks the share of past reversals finished by that distance: at the 75th [percentile rank](https://www.luxalgo.com/library/concept/percentile-rank/), three quarters of prior swings had already turned. - **Time edge of the zone**: the same logic on the time axis flags moves lasting longer than most of their predecessors. - **Deep-zone confluence**: high percentiles on both axes mark a historically stretched move, a spot to tighten risk or demand confirmation. Sample size drives quality: probabilities from a deep Maximum Reversals pool are far steadier than ones built on a handful of swings. Zones avoid overlapping by default, and the display can be limited to the most recent one. ## Reversal Probability Zone & Levels Settings - **Swing Length**: bar count used to detect a swing; higher values track larger, slower reversals. - **Maximum Reversals**: cap on past reversals in the probability sample. Raise it where history allows. - **Normalize Data**: measure swings as returns instead of raw price. - **Percentiles**: enable up to four levels and set each value; style and size options per level. - **No Overlapping Zones / Show Only Last Zone / Show Marks**: display toggles for overlap, zone history, and swing markers. ## Frequently Asked Questions ### How many percentile levels can I plot? Up to four, each fully configurable. The defaults cover the usual checkpoints, and every value can be re-pointed at whatever threshold suits your plan. ### How is this different from Reversal Signals? [Reversal Signals](https://www.luxalgo.com/library/indicator/reversal-signals/) counts candle sequences to flag exhaustion as it forms, while this tool measures how far and how long past swings traveled and projects those statistics forward. One is event-driven, the other distribution-driven. ### Is the Reversal Probability Zone & Levels free? Yes. It belongs to the free tier of the LuxAlgo Library, and you can send it straight into Quant, our coding agent, from this page to study how its zones framed past swings. You can also copy the source code from this page and run it anywhere Pine Script® runs. ## Related indicators - [Reversal Signals](https://www.luxalgo.com/library/indicator/reversal-signals/) (Reversal): markdown at https://www.luxalgo.com/library/indicator/reversal-signals.md - [Reversal Candlestick Structure](https://www.luxalgo.com/library/indicator/reversal-candlestick-structure/) (Reversal): markdown at https://www.luxalgo.com/library/indicator/reversal-candlestick-structure.md - [Reversal Probability Rows](https://www.luxalgo.com/library/indicator/reversal-probability-rows/) (Reversal): markdown at https://www.luxalgo.com/library/indicator/reversal-probability-rows.md - [HTF Reversal Divergences](https://www.luxalgo.com/library/indicator/htf-reversal-divergences/) (Reversal): markdown at https://www.luxalgo.com/library/indicator/htf-reversal-divergences.md - [Bart Pattern](https://www.luxalgo.com/library/indicator/bart-pattern/) (Reversal): markdown at https://www.luxalgo.com/library/indicator/bart-pattern.md - [Percentile Nearest Rank Using Arrays](https://www.luxalgo.com/library/indicator/percentile-nearest-rank-using-arrays/) (Percentile Rank): markdown at https://www.luxalgo.com/library/indicator/percentile-nearest-rank-using-arrays.md - [Significant Breakout Levels (FVG)](https://www.luxalgo.com/library/indicator/significant-breakout-levels-fvg/) (Breakout): markdown at https://www.luxalgo.com/library/indicator/significant-breakout-levels-fvg.md - [Gap Fill Breakouts](https://www.luxalgo.com/library/indicator/gap-fill-breakouts/) (Breakout): markdown at https://www.luxalgo.com/library/indicator/gap-fill-breakouts.md --- Source: https://www.luxalgo.com/library/indicator/reversal-probability-zone-levels/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/