OPEN-SOURCE SCRIPT
PReversion [MohaveTrader]
PReversion is a structural extension indicator that measures how far price has moved from an adaptive equilibrium basis — and whether that distance is increasing or beginning to unwind.
Unlike a fixed moving average, the equilibrium rail automatically adjusts to changing market conditions. Extension is measured from that adaptive equilibrium, not from a static reference point.
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HOW PREVERSION WORKS
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PReversion measures extension using an adaptive equilibrium rail and presents that information as both ATR distance and a continuous score. The score adjusts as extension expands or contracts, helping distinguish an accelerating move from one that is already beginning to unwind.
The score is a continuous version of the four zones — not a separate signal.
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THE FOUR ZONES
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Normal — 0 to 1.0 ATR from rail. Price is near equilibrium.
Extended — 1.0 to 1.5 ATR from rail. Price has moved meaningfully from the rail.
Stretched — 1.5 to 2.0 ATR from rail. Extension is elevated.
Extreme — 2.0+ ATR from rail. Extension is at its greatest, where traders often monitor for signs of exhaustion or reversion.
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UNDERSTANDING THE DASHBOARD
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Trend — Direction of the adaptive rail.
Direction — Whether price is currently above or below the rail.
State — The current zone. Read this first.
Score — Remaining reversion risk on a 0–100 scale. Falls as reversion progresses even while extension remains elevated.
Extension — Distance from the rail in ATR units. The primary metric.
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GETTING STARTED
━━━━━━━━━━━━━━━━━━━━━━━━━━
1. Add PReversion to any chart. It works on all instruments and timeframes.
2. In Settings → Display, choose dashboard position and size.
3. Read the State row first. Then check Score to understand how much reversion has already occurred.
4. Use Extension ATR as the objective distance measure independent of score.
5. Trend responsiveness and score sensitivity can be adjusted for different instruments in Settings.
━━━━━━━━━━━━━━━━━━━━━━━━━━
HOW TO USE IT
━━━━━━━━━━━━━━━━━━━━━━━━━━
PReversion is not a buy or sell signal. Use it as a structural context layer alongside your existing methodology. Typical applications:
• Identifying blow-off extensions before momentum indicators have responded.
• Tracking reversion progress during a pullback — score falling while extension remains elevated indicates the move is unwinding even if price has not returned to the rail.
• Evaluating entry risk when price is deep in the Extreme zone versus re-entering from the Extended zone after a partial reversion.
• Confirming reversion completion when State returns to Normal and Score approaches zero.
Strong trends often do not fully revert to the rail. Price commonly finds support in the outer bands while the rail rises to meet it. PReversion measures the distance; it does not require price to traverse the entire fan.
━━━━━━━━━━━━━━━━━━━━━━━━━━
WORKS WELL ALONGSIDE
━━━━━━━━━━━━━━━━━━━━━━━━━━
• Trend indicators and moving averages
• Volume Profile and VWAP
• Momentum and second-derivative tools
• Market structure and support/resistance
━━━━━━━━━━━━━━━━━━━━━━━━━━
WHAT THIS TOOL IS NOT
━━━━━━━━━━━━━━━━━━━━━━━━━━
PReversion measures structural extension from an adaptive equilibrium basis. It does not predict reversals or guarantee price returns to the rail. Use it as analytical context alongside your existing trading methodology.
━━━━━━━━━━━━━━━━━━━━━━━━━━
VISUAL INSPIRATION
━━━━━━━━━━━━━━━━━━━━━━━━━━
Special thanks to NICK789. The visual design of the extension bands draws inspiration from the cloud fill approach used in the Fusion EMA Trend Trade Planner by NICK789, whose work on adaptive trend visualization influenced the aesthetic direction of PReversion.
Unlike a fixed moving average, the equilibrium rail automatically adjusts to changing market conditions. Extension is measured from that adaptive equilibrium, not from a static reference point.
━━━━━━━━━━━━━━━━━━━━━━━━━━
HOW PREVERSION WORKS
━━━━━━━━━━━━━━━━━━━━━━━━━━
PReversion measures extension using an adaptive equilibrium rail and presents that information as both ATR distance and a continuous score. The score adjusts as extension expands or contracts, helping distinguish an accelerating move from one that is already beginning to unwind.
The score is a continuous version of the four zones — not a separate signal.
━━━━━━━━━━━━━━━━━━━━━━━━━━
THE FOUR ZONES
━━━━━━━━━━━━━━━━━━━━━━━━━━
Normal — 0 to 1.0 ATR from rail. Price is near equilibrium.
Extended — 1.0 to 1.5 ATR from rail. Price has moved meaningfully from the rail.
Stretched — 1.5 to 2.0 ATR from rail. Extension is elevated.
Extreme — 2.0+ ATR from rail. Extension is at its greatest, where traders often monitor for signs of exhaustion or reversion.
━━━━━━━━━━━━━━━━━━━━━━━━━━
UNDERSTANDING THE DASHBOARD
━━━━━━━━━━━━━━━━━━━━━━━━━━
Trend — Direction of the adaptive rail.
Direction — Whether price is currently above or below the rail.
State — The current zone. Read this first.
Score — Remaining reversion risk on a 0–100 scale. Falls as reversion progresses even while extension remains elevated.
Extension — Distance from the rail in ATR units. The primary metric.
━━━━━━━━━━━━━━━━━━━━━━━━━━
GETTING STARTED
━━━━━━━━━━━━━━━━━━━━━━━━━━
1. Add PReversion to any chart. It works on all instruments and timeframes.
2. In Settings → Display, choose dashboard position and size.
3. Read the State row first. Then check Score to understand how much reversion has already occurred.
4. Use Extension ATR as the objective distance measure independent of score.
5. Trend responsiveness and score sensitivity can be adjusted for different instruments in Settings.
━━━━━━━━━━━━━━━━━━━━━━━━━━
HOW TO USE IT
━━━━━━━━━━━━━━━━━━━━━━━━━━
PReversion is not a buy or sell signal. Use it as a structural context layer alongside your existing methodology. Typical applications:
• Identifying blow-off extensions before momentum indicators have responded.
• Tracking reversion progress during a pullback — score falling while extension remains elevated indicates the move is unwinding even if price has not returned to the rail.
• Evaluating entry risk when price is deep in the Extreme zone versus re-entering from the Extended zone after a partial reversion.
• Confirming reversion completion when State returns to Normal and Score approaches zero.
Strong trends often do not fully revert to the rail. Price commonly finds support in the outer bands while the rail rises to meet it. PReversion measures the distance; it does not require price to traverse the entire fan.
━━━━━━━━━━━━━━━━━━━━━━━━━━
WORKS WELL ALONGSIDE
━━━━━━━━━━━━━━━━━━━━━━━━━━
• Trend indicators and moving averages
• Volume Profile and VWAP
• Momentum and second-derivative tools
• Market structure and support/resistance
━━━━━━━━━━━━━━━━━━━━━━━━━━
WHAT THIS TOOL IS NOT
━━━━━━━━━━━━━━━━━━━━━━━━━━
PReversion measures structural extension from an adaptive equilibrium basis. It does not predict reversals or guarantee price returns to the rail. Use it as analytical context alongside your existing trading methodology.
━━━━━━━━━━━━━━━━━━━━━━━━━━
VISUAL INSPIRATION
━━━━━━━━━━━━━━━━━━━━━━━━━━
Special thanks to NICK789. The visual design of the extension bands draws inspiration from the cloud fill approach used in the Fusion EMA Trend Trade Planner by NICK789, whose work on adaptive trend visualization influenced the aesthetic direction of PReversion.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que cualquier republicación del código está sujeta a nuestras Normas internas.
@MohaveTrader
Context First — Signals Second
Precision Trading Tools
Structure • Flow • Momentum
Context First — Signals Second
Precision Trading Tools
Structure • Flow • Momentum
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que cualquier republicación del código está sujeta a nuestras Normas internas.
@MohaveTrader
Context First — Signals Second
Precision Trading Tools
Structure • Flow • Momentum
Context First — Signals Second
Precision Trading Tools
Structure • Flow • Momentum
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.