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[blackcat] L1 Swing Reversal Indicator
Level: 1
Background
Many asked me about swing reversal indicators. There are many but less of them can guarantee high win rate. Because market is complex, the reversals can be nested together, which means sub level reversals will be contained in higher level waves. This can be well explained by Elloit wave theory.
Function
Here it is a simple moving average based swing reversal indicator as an example for many others to improve it. Although it simple, it could be very powerful to dedicated trading pairs in specific time frame. One can adjust N1~N4 as SMA peiords from short to long to customized this indicator or even by trying different moving average types to enhance its accuracy.
Key Signal
N1~N4 --> SMA look back periods
OB --> Overbought Threshold
OS --> Oversold Threshold
Pros and Cons
Simpe but powerful. More feedbacks are appreciated.
Remarks
Easy to be customized or integrated to your trading system.
Readme
In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.
The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.
Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.
Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.
Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.
Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.
Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.
Background
Many asked me about swing reversal indicators. There are many but less of them can guarantee high win rate. Because market is complex, the reversals can be nested together, which means sub level reversals will be contained in higher level waves. This can be well explained by Elloit wave theory.
Function
Here it is a simple moving average based swing reversal indicator as an example for many others to improve it. Although it simple, it could be very powerful to dedicated trading pairs in specific time frame. One can adjust N1~N4 as SMA peiords from short to long to customized this indicator or even by trying different moving average types to enhance its accuracy.
Key Signal
N1~N4 --> SMA look back periods
OB --> Overbought Threshold
OS --> Oversold Threshold
Pros and Cons
Simpe but powerful. More feedbacks are appreciated.
Remarks
Easy to be customized or integrated to your trading system.
Readme
In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.
The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.
Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.
Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.
Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.
Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.
Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.
Phát hành các Ghi chú
OVERVIEWThe [blackcat] L1 Swing Reversal Indicator is a powerful technical analysis tool designed to identify potential swing reversals in market trends. 📈 This indicator combines multiple Simple Moving Averages (SMAs) with advanced swing detection algorithms to provide traders with actionable signals for both bullish and bearish reversals.
FEATURES
• Multiple SMA-based trend analysis
• Advanced bottom swing detection using relative position calculation
• Sophisticated top swing detection with smoothed price differences
• Customizable threshold settings for overbought/oversold conditions
• Visual alerts with colored arrows for easy signal identification
• Integrated alert system for real-time notifications
HOW TO USE
Add the indicator to your chart
Customize the following parameters:
• SMA lengths: 5, 10, 20, and 60 periods
• Overbought threshold (default: 79)
• Oversold threshold (default: 80)
Monitor the chart for:
• Yellow arrows (↑) indicating potential bottom reversals
• Fuchsia arrows (↓) indicating potential top reversals
• SMA crossovers for additional confirmation
LIMITATIONS
• Works best on higher timeframes (4H+)
• Not recommended for extremely volatile markets
• Should be used in conjunction with other technical indicators for confirmation
NOTES
• The indicator uses advanced smoothing algorithms to reduce false signals
• Alert conditions are automatically generated for both bottom and top reversals
• Color-coded signals make it easy to identify potential trading opportunities
Phát hành các Ghi chú
█ OVERVIEWL1 Swing Reversal Indicator V2 keeps the original swing-reversal engine and turns its raw marks into a complete workflow: governed long and short entries, explicit exits, ATR stop-loss and take-profit levels, a position dashboard and a full alert set. The V2 additions stop one signal from firing in bursts, so each mark on the chart means one decision.
█ CONCEPTS
The engine reads two things about price: where it sits inside a rolling swing range, and how much of the recent movement is genuinely directional.
• Position in swing range — a normalized reading of close inside the highest-high / lowest-low window; a recovery out of the lower extreme flags a bottom swing.
• Directional efficiency — the share of recent movement made in one direction; a very high reading that starts to fall flags a top swing.
• Trend context — four moving averages let every mark be checked against structure by eye.
Key principles:
• A signal is an event, not a level: it fires once per reversal instead of on every bar the condition stays true.
• A position state machine arbitrates entries and exits — no duplicate entries, no exit without a position, no long and short on the same bar.
• Risk is expressed in ATR multiples, so the same settings travel across symbols and timeframes.
█ HOW TO USE
1 — Add the indicator to any chart. Defaults are ready to use: yellow and fuchsia arrows are the original detection marks, green "E" and red "S" labels are the governed entries.
2 — Choose an exit model in Signal Governance: "Opposite Signal" (default), "Chandelier ATR", "Both", or "Signal Only (No Exit)" to reproduce the one-way V1 behaviour.
3 — Read the dashboard at the top right for position state, entry, stop, target, ATR, HTF gate state and remaining cooldown.
4 — Build alerts from the six alertcondition channels, or use the dynamic alerts for messages stamped with direction and price.
Input Parameters
• Swing Range Lookback (8) and Position Smoothing EMA (3): the bottom-swing window and its smoothing.
• Directional Smoothing (7): the top-swing movement window.
• Overbought Threshold (79) and Oversold Threshold (80): trigger sensitivity — lower values produce more signals.
• Enable Short Signals (on): switch off for long-only behaviour.
• Cooldown Bars (3) and Same-bar Entry/Exit Exclusivity (on): signal governance; set cooldown to 0 to disable it.
• Exit Mechanism, Chandelier Lookback (10), Chandelier Trail (3.0 xATR).
• ATR Length (14), Stop Loss (2.0 xATR), Take Profit (3.0 xATR), Show ATR TP/SL (on).
• Visual toggles: original plotarrow marks, label system, background tint, dashboard, moving averages.
• Advanced, off by default: Re-entry RL/RS with anchor window and breakout source; HTF Direction Gate with timeframe and EMA length.
█ SIGNALS
• Green "E" below the bar — governed long entry.
• Red "S" above the bar — governed short entry.
• Orange "XL" / "XS" cross — long exit / short exit.
• Teal "RL" / maroon "RS" — optional re-entry once the exit anchor is broken.
• Yellow / fuchsia arrows — raw bottom and top swing detection, ungoverned.
• Red and teal broken lines — stop-loss and take-profit for the open position.
• Background tint — green while long, red while short.
█ FEATURES
• Six alertcondition channels plus four dynamic alerts, all confirmed on bar close.
• ATR stop and target plotted for every open position, plus an optional chandelier trailing exit.
• Optional higher-timeframe direction gate built on the last closed HTF bar, so it does not repaint.
• Every V2 module is switchable — governance, labels, dashboard and filters can be turned off to return to V1 behaviour.
█ LIMITATIONS
• Reversal timing is statistical; ranging markets still produce false signals.
• Signals are evaluated on bar close, so marks appear at the close of the trigger bar.
• The HTF gate only acts when its timeframe is longer than the chart timeframe; otherwise it stays inactive.
• Real-time signals can change until the bar that triggered them closes.
█ NOTES
• Built-ins used: ta.highest, ta.lowest, ta.ema, ta.crossover, ta.atr, ta.sma, and request.security for the optional HTF gate.
• Open source under the Mozilla Public License 2.0 — reuse and modification welcome, attribution appreciated.
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Questions and feedback are welcome in the comments below.
Don't miss out! The first and most important thing to do is to join my Discord chat now! Click here to start your adventure: discord.com/invite/ZTGpQJq My new github for more pine development soon: github.com/wxt-coder
Thông báo miễn trừ trách nhiệm
Thông tin và các ấn phẩm này không nhằm mục đích, và không cấu thành, lời khuyên hoặc khuyến nghị về tài chính, đầu tư, giao dịch hay các loại khác do TradingView cung cấp hoặc xác nhận. Đọc thêm tại Điều khoản Sử dụng.
Don't miss out! The first and most important thing to do is to join my Discord chat now! Click here to start your adventure: discord.com/invite/ZTGpQJq My new github for more pine development soon: github.com/wxt-coder
Thông báo miễn trừ trách nhiệm
Thông tin và các ấn phẩm này không nhằm mục đích, và không cấu thành, lời khuyên hoặc khuyến nghị về tài chính, đầu tư, giao dịch hay các loại khác do TradingView cung cấp hoặc xác nhận. Đọc thêm tại Điều khoản Sử dụng.