# Stop-and-reverse

Stop-and-reverse runs a parabolic always-in engine: a trailing level accelerates toward price (start 0.02, step 0.02, maximum 0.2) and each touch closes one leg and opens the opposite one in the same act. A dashboard tracks the flip fill, initial risk and open R-multiple, while a whipsaw monitor flags four or more flips inside a 50-bar window.

- Indicator in the LuxAlgo Library, by LuxAlgo, published Jun 15, 2026.
- Access: free.
- Concepts: [Stop-and-reverse](https://www.luxalgo.com/library/concept/stop-and-reverse/) (primary)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=acsuakof7dvrtwm309t4s5mb
- Page: https://www.luxalgo.com/library/indicator/stop-and-reverse/

**Stop-and-reverse** implements the [stop-and-reverse](https://www.luxalgo.com/library/concept/stop-and-reverse/) exit style at its purest: the same touch that stops one leg fills the entry of the next. A parabolic level trails the open leg, accelerating toward price as the trend extends, so the system is never flat. A dashboard reports the current side and age, flip fill price, level in force, initial risk (1R), open R-multiple and the flip count inside a rolling window.

## How to Trade the Stop-and-reverse?

- **Flip to Long**: the short leg is stopped and the level resets below price, ratcheting upward from there.
- **Flip to Short**: the mirrored event, with the level resetting above price and descending only.
- **Whipsaw Highlight**: the background shades while flips cluster: ranging tape where reversals are often demoted to alerts pending separate confirmation.

The gradient fill spans the flip distance, the risk on every leg. Because each reversal order both exits and enters, every flip executes double size, worth remembering in thin markets. It sits among the [risk and exit tools](https://www.luxalgo.com/library/family/risk-exits/) as the archetypal always-in construction.

## Stop-and-reverse Settings

- **Acceleration Start** (default 0.02): starting acceleration factor of the trailing level.
- **Acceleration Step** (default 0.02): added at each new extreme. Larger steps tighten the trail faster.
- **Acceleration Maximum** (default 0.2): the factor's ceiling; higher values hug price sooner but flip more in chop.
- **Flip Count Window** (default 50): recent bars over which flips are counted.
- **Whipsaw Threshold** (default 4): flip count that flags a whipsaw cluster.
- Dashboard and style toggles cover the position panel, line-versus-dots display, trail fill, flip markers and whipsaw highlight.

## Frequently Asked Questions

### How does this differ from the Parabolic SAR?

The engine is the same Wilder acceleration logic behind the [Parabolic SAR](https://www.luxalgo.com/library/indicator/parabolic-sar/), but this build commits to the always-in reading: each leg is tracked as a position with a fill price, 1R and open R-multiple, plus a whipsaw monitor. If you only want trailing dots as an exit reference, the plain SAR serves better.

### What does the Initial Risk (1R) row mean?

It is the distance between the flip fill and the level at entry: what the leg loses if it flips immediately. Size the position so that distance matches your risk budget; the Open Leg row then reads in R-multiples.

### Should every flip be traded?

In trending tape the flips define clean alternating legs, but inside congestion always-in logic pays for every false move twice: a booked loss plus immediate exposure in the wrong direction. The whipsaw highlight marks exactly those stretches.

## Related indicators

- [Opening Range with Breakouts & Targets](https://www.luxalgo.com/library/indicator/opening-range-with-breakouts-targets/) (Profit Target Taxonomy): markdown at https://www.luxalgo.com/library/indicator/opening-range-with-breakouts-targets.md
- [Market Structure Targets Model](https://www.luxalgo.com/library/indicator/market-structure-targets-model/) (Profit Target Taxonomy): markdown at https://www.luxalgo.com/library/indicator/market-structure-targets-model.md
- [Targets For Overlay Indicators](https://www.luxalgo.com/library/indicator/targets-for-overlay-indicators/) (Profit Target Taxonomy): markdown at https://www.luxalgo.com/library/indicator/targets-for-overlay-indicators.md
- [Targets For Many Indicators](https://www.luxalgo.com/library/indicator/targets-for-many-indicators/) (Profit Target Taxonomy): markdown at https://www.luxalgo.com/library/indicator/targets-for-many-indicators.md
- [CBC Flip with Targets and Filters](https://www.luxalgo.com/library/indicator/cbc-flip-with-targets-and-filters/) (Profit Target Taxonomy): markdown at https://www.luxalgo.com/library/indicator/cbc-flip-with-targets-and-filters.md
- [Signals & Overlays](https://www.luxalgo.com/library/indicator/luxalgo-signals-overlays/) (Risk & Exits): markdown at https://www.luxalgo.com/library/indicator/luxalgo-signals-overlays.md
- [Universal Signal Backtester](https://www.luxalgo.com/library/indicator/universal-signal-backtester/) (Risk & Exits): markdown at https://www.luxalgo.com/library/indicator/universal-signal-backtester.md
- [Session Sweep & iFVG RR](https://www.luxalgo.com/library/indicator/session-sweep-ifvg-rr/) (Risk & Exits): markdown at https://www.luxalgo.com/library/indicator/session-sweep-ifvg-rr.md

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Source: https://www.luxalgo.com/library/indicator/stop-and-reverse/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/
