Early Reversal Pro

Early Reversal Pro is a non-repainting, structure-first market context and early reversal detection tool designed to identify high-quality reversal zones before a trend potentially changes direction.

Instead of generating frequent signals based only on indicators, this script follows a market structure → exhaustion → confirmation workflow to evaluate whether the environment is suitable for a reversal or if the existing trend is still intact.

The goal is not to predict tops or bottoms, but to answer:
“Is the market showing objective structural evidence of a reversal — or not yet?”

Core Design Philosophy
This indicator is built around three principles:

• Structure comes first – reversals are only considered after objective structural events appear.
  
• Confirmation is layered – multiple independent conditions must align.
  
• Selectivity over frequency – fewer signals, higher quality, lower noise.
  

All calculations are bar-close based and do not repaint.

What the Script Analyzes
The system evaluates three main layers:
1. Structural Shift Detection (Tier-1)
Reversal consideration begins only when one or more of the following appear:

• Liquidity sweeps of recent highs/lows
  
• Break of structure (BOS)
  
• Change of character (CHoCH)
  
• Extreme overshoot & snapback behavior
  
• Climax + failure patterns
  

These define whether the prior trend is objectively weakening.

2. Confirmation & Exhaustion Layer (Tier-2)
Once structure is present, the script evaluates confirmation using:

• VWAP reclaim / rejection
  
• Volume + large wick behavior
  
• RSI divergence using swing structure
  
• ATR-based exhaustion
  
• Micro-structure shift (HH/HL vs LH/LL)
  
• Volatility squeeze → expansion
  

These conditions measure whether participation and momentum support a reversal attempt.

3. Confluence Layer (Tier-3)
Additional context signals:

• Reversal candle patterns (hammer, engulfing, shooting star)
  
• Wyckoff-style effort vs result failure
  

These do not trigger signals alone, but improve confidence when aligned.

Scoring + Tier Qualification
Two independent systems are used:

• Score system – weighted aggregation of structural, exhaustion, and confirmation signals
  
• Tier qualification system – strict rule set requiring: ≥ 2 Tier-1 conditions and ≥ 1 Tier-2 confirmation

A setup may have a high score but still fail tier qualification. This is intentional and prevents weak reversals from being promoted.

Trading Modes
Trading modes adjust how sensitive the system is to volatility and structural thresholds:

Intraday

1. More sensitive to volatility changes
   
2. Designed for short-term trades
   

Swing

Balanced sensitivity (default)

Positional

1. Filters short-term noise
   
2. Designed for higher timeframes and wider swings
   

These modes affect exhaustion detection, volatility filters, and structure sensitivity.

Risk Profiles
Risk profiles adjust how strict the qualification thresholds are:

Aggressive

• Lower score requirements
  
• Earlier signals
  
• Higher frequency, higher risk

Balanced

• Default behavior

Conservative

• Higher minimum score requirements
  
• Fewer but higher-quality signals

This allows traders to match the tool to their risk tolerance.

Higher-Timeframe Context
The script also integrates:

• Higher-timeframe EMA trend bias
  
• Premium / discount zones using HTF ranges
  
• Higher-timeframe resistance proximity filters (buy-side safety)

These are shown in the dashboard and used to qualify “execution-ready” states.

How to Use

• Wait for structural events (sweep, BOS, CHoCH).
  
• Observe tier qualification and score alignment.
  
• Treat ER-B / ER-S labels as zones, not instant entries.
  
• Use the execution panel to see whether conditions are: READY, FILTERED, WAIT or CAUTION
  
• Always confirm with your own risk management and execution logic.
  
• Fewer signals are intentional to reduce false reversals.

Important Notes

• This script does not manage trades or position sizing.
  
• Entries, exits, and risk remain fully discretionary.
  
• Alerts trigger only when structural conditions are satisfied.
  
• Designed for context and decision support, not automation.

Disclaimer
This indicator is provided for educational and analytical purposes only and does not constitute financial or investment advice.