# Sequencer The Sequencer counts structured sequences of closes against earlier prices through two phases - Preparation and Lead-Up - to flag potential exhaustion and reversal points, with completion levels marking key prices. Phase lengths, comparison periods, refined steps, suspension, and cancellation are all adjustable - for reversal traders who want the count on their own terms. - Indicator in the LuxAlgo Library, by LuxAlgo, published Apr 4, 2024. - Access: free. - Concepts: [Trend Exhaustion](https://www.luxalgo.com/library/concept/trend-exhaustion/) (primary) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cmpwn5lyz007wvhsg2j5hbnr5 - Page: https://www.luxalgo.com/library/indicator/sequencer/ **Sequencer** organizes price action into counted sequences: it tallies how many times price closes beyond the close of a set number of bars ago, and arranges those counts into two phases. The Preparation phase completes when N consecutive closes print below (bullish) or above (bearish) the close from the Comparison Period; that arms the Lead-Up phase, whose counts - not necessarily consecutive - must clear the corresponding prior lows or highs to finish the sequence. ## How to Trade the Sequencer? - **Completed preparations (green/red)**: green highlights mark bullish preparations, red bearish. Completion stages the Lead-Up, though a reversal directly off a finished preparation is not uncommon. - **Completed lead-ups (blue/orange)**: a finished bullish Lead-Up (blue) points to a potential reversal higher; a bearish one (orange) hints at a turn lower. The counts exist to flag [trend exhaustion](https://www.luxalgo.com/library/concept/trend-exhaustion/), not to confirm trends. - **Completion levels**: the Preparation/Lead-Up Completion Levels setting plots the final step's price as a reference level, with Show Last capping how many stay visible. Longer phase lengths target larger, more sustained reversals. ## Sequencer Settings - **Preparation Phase Length / Lead-Up Phase Length**: how many qualifying closes each phase requires. - **Comparison Period**: how many bars back each close is measured against. - **Preparation Type**: Standard or Refined, with **Refined Preparations Steps** choosing the steps checked in refined mode. - **Suspension / Suspension Steps**: require designated lead-up steps to surpass the last step's price before completion is allowed. - **Apply Cancellation**: removes lead-ups invalidated by an opposing preparation. - **Bullish / Bearish Preparations Levels + Show Last**: display completed preparation levels and cap how many appear. ## Frequently Asked Questions ### What does a completed Lead-Up actually tell me? That price has pushed beyond its reference lows or highs enough times for the sequence to deem the move stretched. It is a heads-up for a possible reversal, strongest when read alongside your own structure or confirmation tools. ### Why use Refined preparations or Suspension? Both tighten the count so fewer sequences qualify. Refined preparations demand that chosen steps respect the prior step's extreme, and suspension requires designated lead-up steps to surpass the last step's price. ### How do I start using the Sequencer? Access is free through the LuxAlgo Library, and Quant, our coding agent, can run and backtest it straight from this page. If you prefer a signal-first take on exhaustion counting, see [Reversal Signals](https://www.luxalgo.com/library/indicator/reversal-signals/). 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/) (Trend Exhaustion): markdown at https://www.luxalgo.com/library/indicator/reversal-signals.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 - [Retest & Break Setup](https://www.luxalgo.com/library/indicator/retest-break-setup/) (Retest): markdown at https://www.luxalgo.com/library/indicator/retest-break-setup.md - [9:30 AM 15m Fib Breakout](https://www.luxalgo.com/library/indicator/9-30-am-15m-fib-breakout/) (Breakout): markdown at https://www.luxalgo.com/library/indicator/9-30-am-15m-fib-breakout.md - [Opening Range with Breakouts & Targets](https://www.luxalgo.com/library/indicator/opening-range-with-breakouts-targets/) (Breakout): markdown at https://www.luxalgo.com/library/indicator/opening-range-with-breakouts-targets.md - [Trendline Breakout Navigator](https://www.luxalgo.com/library/indicator/trendline-breakout-navigator/) (Breakout): markdown at https://www.luxalgo.com/library/indicator/trendline-breakout-navigator.md - [Breakouts with Tests & Retests](https://www.luxalgo.com/library/indicator/breakouts-with-tests-retests/) (Breakout): markdown at https://www.luxalgo.com/library/indicator/breakouts-with-tests-retests.md --- Source: https://www.luxalgo.com/library/indicator/sequencer/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/