Reversal Signals

Reversal Signals is the LuxAlgo counter-trend engine: it counts candle closes against fixed reference bars to flag where a directional push may be exhausting. Two phases structure every signal: a Momentum Phase seeking a completed 9-count (occasionally validated on the 8th candle), where each close must beat the close from four bars before, and a Trend Exhaustion Phase that follows with a 13-count judged against the close two bars back.

The phases behave differently by design. Momentum aborts the moment its four-bar condition fails, while the exhaustion count tolerates interruptions, pauses if a fresh momentum phase appears mid-count, and extends until the 13th qualifying candle prints: the slower, higher-conviction read on trend exhaustion.

How to Trade the Reversal Signals?

• Momentum trades: act after a completed momentum phase, ideally where the count finishes into support or resistance.
• Exhaustion trades: completed 13-counts target deeper trend fatigue and more durable turns.
• Qualified trades: an exhaustion phase completing alongside a momentum phase is the strongest setup class.
• L / S labels: long and short suggestions print on the chart, with cautionary markers when price action argues for continuation instead.

Alerts are available for phase completions, level crossovers, and activated setups. Counter-trend entries fail fast when a trend refuses to die, so confirm signals with independent analysis.

What the Reversal Signals Shows

Numbered counts print above or below candles as each phase progresses, letting a setup mature in plain sight. Completed phases leave levels to trade against: support and resistance lines plus stop/risk thresholds for trade management. Display options cover full phases or completions only.

Frequently Asked Questions

Does an interrupted count start over?

Should I pair the counts with other confirmation?

What does access to Reversal Signals cost?