OPEN-SOURCE SCRIPT
Reversal Scalper 2.0- Adib Noorani
Reversal Scalper - Smoothed Stoch & ATR Trend Filter
Hey everyone, I originally put this script together to help me scalp XAUUSD and Indian equities on lower timeframes, specifically to solve a problem I was having with standard momentum oscillators.
We all know the main issue with using a regular Stochastic for scalping: it’s great for spotting exhaustion, but when a strong trend kicks in, the oscillator just stays pegged in the overbought or oversold zones. If you try to trade those reversal signals blindly, you just get run over by the trend.
To fix this, I created a mashup that combines a smoothed Stochastic with a custom ATR-based structural trend ribbon. The whole point of combining these two indicators is to use the ATR bands to define the actual market structure, and only take the Stochastic reversal signals when the trend filter confirms that the push is actually exhausted.
How the math works:
First, the bottom oscillator (what I call the Reversal Strength Meter) is based on a standard 8-period Stochastic. But to cut out the erratic noise you usually get on the 1m or 5m charts, I ran it through a 5-period Simple Moving Average. It gives a much cleaner read on momentum.
Second, the background trend filter uses a long-term ATR (100-period, halved) multiplied by a deviation factor (default is 3). The script looks back at recent swing highs and lows to project a volatility channel. I linked this channel to the bar colors so you don't need to look at messy lines on your chart.
How to trade with it:
If the price breaks hard outside the ATR channel, the candles change color (white for a strong push up, black for a strong push down). When you see this, it means the trend is expanding—do not look for reversals, even if the Stochastic is at an extreme.
For Longs: Wait for a strong downward push that turns the candles black. Let the smoothed Stochastic dip below the 20 level. You only enter long when the candles go back to their normal color (showing the structural selling pressure has stopped) AND the stochastic crosses firmly back up above 20.
For Shorts: Wait for a bullish push that turns the candles white. Let the stochastic ride up above 80. Your short trigger is when the candles return to normal and the stochastic crosses back down below 80.
I left the inputs open so you can adjust the Stochastic lengths and the ATR deviation factor depending on what timeframe or asset you are trading. Hope this helps you guys filter out the fake outs.
Hey everyone, I originally put this script together to help me scalp XAUUSD and Indian equities on lower timeframes, specifically to solve a problem I was having with standard momentum oscillators.
We all know the main issue with using a regular Stochastic for scalping: it’s great for spotting exhaustion, but when a strong trend kicks in, the oscillator just stays pegged in the overbought or oversold zones. If you try to trade those reversal signals blindly, you just get run over by the trend.
To fix this, I created a mashup that combines a smoothed Stochastic with a custom ATR-based structural trend ribbon. The whole point of combining these two indicators is to use the ATR bands to define the actual market structure, and only take the Stochastic reversal signals when the trend filter confirms that the push is actually exhausted.
How the math works:
First, the bottom oscillator (what I call the Reversal Strength Meter) is based on a standard 8-period Stochastic. But to cut out the erratic noise you usually get on the 1m or 5m charts, I ran it through a 5-period Simple Moving Average. It gives a much cleaner read on momentum.
Second, the background trend filter uses a long-term ATR (100-period, halved) multiplied by a deviation factor (default is 3). The script looks back at recent swing highs and lows to project a volatility channel. I linked this channel to the bar colors so you don't need to look at messy lines on your chart.
How to trade with it:
If the price breaks hard outside the ATR channel, the candles change color (white for a strong push up, black for a strong push down). When you see this, it means the trend is expanding—do not look for reversals, even if the Stochastic is at an extreme.
For Longs: Wait for a strong downward push that turns the candles black. Let the smoothed Stochastic dip below the 20 level. You only enter long when the candles go back to their normal color (showing the structural selling pressure has stopped) AND the stochastic crosses firmly back up above 20.
For Shorts: Wait for a bullish push that turns the candles white. Let the stochastic ride up above 80. Your short trigger is when the candles return to normal and the stochastic crosses back down below 80.
I left the inputs open so you can adjust the Stochastic lengths and the ATR deviation factor depending on what timeframe or asset you are trading. Hope this helps you guys filter out the fake outs.
开源脚本
秉承TradingView的精神，该脚本的作者将其开源，以便交易者可以查看和验证其功能。向作者致敬！您可以免费使用该脚本，但请记住，重新发布代码须遵守我们的网站规则。
Discipline -> Consistency -> Perseverance -> Repeat
Adib Noorani is always ready to help for the above
Adib Noorani is always ready to help for the above
免责声明
这些信息和出版物并非旨在提供，也不构成TradingView提供或认可的任何形式的财务、投资、交易或其他类型的建议或推荐。请阅读使用条款了解更多信息。
开源脚本
秉承TradingView的精神，该脚本的作者将其开源，以便交易者可以查看和验证其功能。向作者致敬！您可以免费使用该脚本，但请记住，重新发布代码须遵守我们的网站规则。
Discipline -> Consistency -> Perseverance -> Repeat
Adib Noorani is always ready to help for the above
Adib Noorani is always ready to help for the above
免责声明
这些信息和出版物并非旨在提供，也不构成TradingView提供或认可的任何形式的财务、投资、交易或其他类型的建议或推荐。请阅读使用条款了解更多信息。