OPEN-SOURCE SCRIPT
Smart Reversal Compass [forexobroker]
Smart Reversal Compass combines four independent reversal signals -- RSI divergence, volume climax, reversal candle pattern (pin bar or engulfing), and support/resistance touch -- into a single cardinal compass reading. North means an up-reversal is forming; South means a down-reversal is forming. The compass only fires a signal when at least the configured minimum number of confluences (default 3 of 4) are lit simultaneously on the same bar.
This indicator is designed for traders who reject single-signal reversal trades because they understand that any one pattern is weak on its own, but the coincidence of four unrelated signals at the same price level is a genuinely rare and significant event. The dashboard shows every component's live state so you can see the compass "light up" in real time as conditions align.
🔶 CONCEPTS
Reversals almost never begin from a single condition. A pin bar in isolation is noise. Oversold RSI in isolation is noise. A volume spike in isolation is noise. But when a pin bar prints at a prior swing low, with volume spiking and RSI forming a higher low as price forms a lower low, the probability of a reversal rises dramatically. This indicator formalizes that truth: it asks four independent questions, tallies the answers, and only points a directional arrow when enough of them agree. The compass metaphor makes the reading intuitive -- you see where the market is pointing at a glance.
🔶 HOW IT WORKS
- Monitors RSI at each new pivot high and pivot low and compares to the previous pivot to detect divergence
- Checks if current bar volume exceeds the SMA by the climax multiplier
- Classifies the current bar as a pin bar (wick ratio >= threshold) or engulfing (opposite-side engulfing pattern)
- Tests if the bar's high or low is within ATR tolerance of the last pivot high or low (S/R touch)
- Tallies confluence counts; fires BUY if bull count >= minimum and exceeds bear count, SELL in the mirror case
🔶 HOW TO USE
1. Add the indicator -- the dashboard (top-right) shows every component state and live confluence tallies
2. Green BUY triangle with "↑ N" label fires when bullish confluences reach the minimum and exceed bearish; pink SELL triangle with "↓ S" fires for the mirror
3. The signal label shows which components were lit using ● (lit) and ○ (dark) markers for fast postmortem review
4. Increase Min Confluences to 4 for only textbook-perfect reversals; lower to 2 for more frequent but less confirmed signals
5. Adjust S/R Tolerance wider to allow approximate level touches; narrower for stricter S/R proximity
🔶 FEATURES
- Non-repainting signals (barstate.isconfirmed)
- Works on all timeframes and instruments
- 9 alert conditions with JSON webhook support
- Four-factor confluence tally with live per-component dashboard
- Cardinal compass reading (N/S) on both chart labels and dashboard header
🔶 SETTINGS GUIDE
- RSI Length -- Period for RSI divergence detection
- Divergence Lookback -- Maximum bars since last pivot to still qualify as divergence
- Pivot Length -- Lookback for swing high/low detection
- Volume SMA Length -- Baseline for volume climax detection
- Volume Climax Multiplier -- Volume must exceed this multiple of SMA
- Pin Bar Wick Ratio -- Rejection wick must be at least this fraction of total range
- S/R Tolerance (ATR) -- Distance in ATR units for S/R touch qualification
- Min Confluences -- Minimum lit confluences to trigger signal (2-4)
- Signal Cooldown Bars -- Minimum bars between consecutive signals
🔶 ALERTS
- SRC Buy Compass N -- Bullish compass signal (N) fired
- SRC Sell Compass S -- Bearish compass signal (S) fired
- SRC Any Signal -- Any directional compass signal
- SRC Bull Divergence -- Bullish RSI divergence detected
- SRC Bear Divergence -- Bearish RSI divergence detected
- SRC Volume Climax -- Volume climax detected on the bar
- SRC Reversal Candle -- Pin bar or engulfing candle detected
- SRC Perfect 4/4 -- All four confluences lit simultaneously
- SRC Webhook JSON -- Generic webhook payload for external automation
🔶 LIMITATIONS & DISCLAIMER
- This is a technical analysis tool, not financial advice. Always use proper risk management.
- Past confluence setups do not guarantee future price movements.
- Divergence detection depends on confirmed pivots and therefore lags by the pivot length.
- A compass reading of N or S indicates reversal potential based on confluence, not a probability guarantee of a successful trade.
This indicator is designed for traders who reject single-signal reversal trades because they understand that any one pattern is weak on its own, but the coincidence of four unrelated signals at the same price level is a genuinely rare and significant event. The dashboard shows every component's live state so you can see the compass "light up" in real time as conditions align.
🔶 CONCEPTS
Reversals almost never begin from a single condition. A pin bar in isolation is noise. Oversold RSI in isolation is noise. A volume spike in isolation is noise. But when a pin bar prints at a prior swing low, with volume spiking and RSI forming a higher low as price forms a lower low, the probability of a reversal rises dramatically. This indicator formalizes that truth: it asks four independent questions, tallies the answers, and only points a directional arrow when enough of them agree. The compass metaphor makes the reading intuitive -- you see where the market is pointing at a glance.
🔶 HOW IT WORKS
- Monitors RSI at each new pivot high and pivot low and compares to the previous pivot to detect divergence
- Checks if current bar volume exceeds the SMA by the climax multiplier
- Classifies the current bar as a pin bar (wick ratio >= threshold) or engulfing (opposite-side engulfing pattern)
- Tests if the bar's high or low is within ATR tolerance of the last pivot high or low (S/R touch)
- Tallies confluence counts; fires BUY if bull count >= minimum and exceeds bear count, SELL in the mirror case
🔶 HOW TO USE
1. Add the indicator -- the dashboard (top-right) shows every component state and live confluence tallies
2. Green BUY triangle with "↑ N" label fires when bullish confluences reach the minimum and exceed bearish; pink SELL triangle with "↓ S" fires for the mirror
3. The signal label shows which components were lit using ● (lit) and ○ (dark) markers for fast postmortem review
4. Increase Min Confluences to 4 for only textbook-perfect reversals; lower to 2 for more frequent but less confirmed signals
5. Adjust S/R Tolerance wider to allow approximate level touches; narrower for stricter S/R proximity
🔶 FEATURES
- Non-repainting signals (barstate.isconfirmed)
- Works on all timeframes and instruments
- 9 alert conditions with JSON webhook support
- Four-factor confluence tally with live per-component dashboard
- Cardinal compass reading (N/S) on both chart labels and dashboard header
🔶 SETTINGS GUIDE
- RSI Length -- Period for RSI divergence detection
- Divergence Lookback -- Maximum bars since last pivot to still qualify as divergence
- Pivot Length -- Lookback for swing high/low detection
- Volume SMA Length -- Baseline for volume climax detection
- Volume Climax Multiplier -- Volume must exceed this multiple of SMA
- Pin Bar Wick Ratio -- Rejection wick must be at least this fraction of total range
- S/R Tolerance (ATR) -- Distance in ATR units for S/R touch qualification
- Min Confluences -- Minimum lit confluences to trigger signal (2-4)
- Signal Cooldown Bars -- Minimum bars between consecutive signals
🔶 ALERTS
- SRC Buy Compass N -- Bullish compass signal (N) fired
- SRC Sell Compass S -- Bearish compass signal (S) fired
- SRC Any Signal -- Any directional compass signal
- SRC Bull Divergence -- Bullish RSI divergence detected
- SRC Bear Divergence -- Bearish RSI divergence detected
- SRC Volume Climax -- Volume climax detected on the bar
- SRC Reversal Candle -- Pin bar or engulfing candle detected
- SRC Perfect 4/4 -- All four confluences lit simultaneously
- SRC Webhook JSON -- Generic webhook payload for external automation
🔶 LIMITATIONS & DISCLAIMER
- This is a technical analysis tool, not financial advice. Always use proper risk management.
- Past confluence setups do not guarantee future price movements.
- Divergence detection depends on confirmed pivots and therefore lags by the pivot length.
- A compass reading of N or S indicates reversal potential based on confluence, not a probability guarantee of a successful trade.
Script de código aberto
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All scripts & content provided by Forexobroker are for informational & educational purposes only.
🔵Join our free telegram for updates : t.me/algotradingedge
All scripts & content provided by Forexobroker are for informational & educational purposes only.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.
Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
🔵Gain access to our powerful tools : kestutisbalciunas.com/tradingview/
🔵Join our free telegram for updates : t.me/algotradingedge
All scripts & content provided by Forexobroker are for informational & educational purposes only.
🔵Join our free telegram for updates : t.me/algotradingedge
All scripts & content provided by Forexobroker are for informational & educational purposes only.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.