Reversal Detector [Scalping-Algo]Reversal Detector - Volume-Based Price Structure Analysis
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WHAT IT DOES
This indicator identifies potential reversal zones by analyzing price structure combined with volume. Instead of using traditional overbought/oversold readings or single candlestick patterns, it looks for a specific two-phase setup:
Phase 1 - Anchor Detection:
The script scans for bars where price closes beyond ALL previous bars in the lookback period. For a bullish setup, the close must be lower than every low of the past N candles (default 20). This represents an extreme extension, not just a "lower low." Volume on this bar should exceed 2x the average to confirm real participation.
Phase 2 - Confirmation:
After an anchor forms, the indicator waits for price to reverse back through the anchor bar's range. This must occur within a set number of bars (default 3). If price continues making new extremes instead, the setup is cancelled.
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HOW TO READ THE SIGNALS
B Labels (Green, below price) = Bullish reversal confirmed
S Labels (Red, above price) = Bearish reversal confirmed
Each signal shows a score from 3/5 to 5/5:
- 3/5 = Basic confirmation met
- 4/5 = Good volume on anchor or confirmation
- 5/5 = Strong volume + aligned with 200 EMA trend
Dashed Boxes = Pending setup waiting for confirmation
- Green box = Bullish setup in progress
- Red box = Bearish setup in progress
Status Panel (bottom right):
- Shows current state (Scanning / Bull Setup / Bear Setup)
- Countdown for confirmation window
- Current volume condition
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HOW TO USE
Entry Approach:
1. Wait for a confirmed signal (B or S label appears)
2. Higher scores (4/5 or 5/5) indicate better quality setups
3. Consider the overall trend context - signals aligned with the 200 EMA direction tend to work better
Stop Placement:
- For long entries: below the anchor bar's low
- For short entries: above the anchor bar's high
The boxes show you the anchor zone while waiting for confirmation, which can help visualize the invalidation level.
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SETTINGS
Structure Settings:
- Lookback Period (default 20): How many bars back to check for the breakout. Lower = more setups but less extreme. Higher = fewer but more significant extensions.
- Confirmation Bars (default 3): Maximum bars allowed for price to reverse. Tighter window = stricter filter.
Volume Settings:
- Use Volume Filter: Toggle volume requirement on/off
- Volume MA Length (default 20): Period for average volume calculation
- Anchor Volume Multiple (default 2.0): Required volume spike on anchor bar
- Confirm Volume Multiple (default 1.2): Volume threshold on confirmation bar
Visual Settings:
- Trend EMA Length (default 200): Used for trend alignment scoring
- Show Pending Setups: Display the dashed boxes for active setups
- Show Status Panel: Display the info table
- Colors and label size customization
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WHAT MAKES THIS DIFFERENT
The core idea is requiring price to break beyond EVERY bar in the lookback range, not just make a swing high/low. This filters out minor pullbacks and focuses on genuine extensions where price has moved significantly.
The two-phase approach (anchor then confirmation) helps avoid catching falling knives - you're not entering just because price is extended, but waiting for actual reversal evidence.
Volume integration adds another layer. The anchor bar needs elevated volume to confirm real selling/buying pressure, not just a gap or illiquid move.
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SUGGESTED USE
Works on any timeframe, but I find it most useful on 5-15 minute charts for intraday setups.
Combine with:
- Key support/resistance levels
- Higher timeframe trend direction
- Market context (avoid during major news)
The indicator identifies the pattern mechanically - it doesn't predict outcomes. Use proper position sizing and always have a stop loss plan.
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ALERTS INCLUDED
- Bullish Reversal
- Bearish Reversal
- Any Reversal
- Strong Bullish (4/5 or higher)
- Strong Bearish (4/5 or higher)
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Indicateur Pine Script®






















