Dual-Phase Reversal by DGT

Dual-Phase Reversal (DPR) is a two-phase market exhaustion framework that tracks directional momentum through Momentum Exhaustion and Terminal Exhaustion. It combines sequential price conditions, Momentum Shift initiation, phase qualification, exhaustion progression, invalidation levels, Range Pivots, Volume Pressure, and Volume-Weighted Bars to provide a structured view of potential trend exhaustion and reversal conditions.

The framework is designed to distinguish between an initial loss of directional momentum and a subsequent terminal phase, while keeping the two stages logically independent.

Momentum Exhaustion identifies an initial phase of directional overextension using a four-bar close relationship. A new phase begins only when a Momentum Shift occurs — a change in the direction of the four-bar close relationship. Sustained one-directional momentum therefore does not automatically initiate a new count.

The Momentum Exhaustion phase progresses through its sequential conditions and can receive a Q (Qualification) classification based on the corresponding price structure. Qualification describes the completed setup itself and is not required for the subsequent Terminal Exhaustion phase to begin.

Terminal Exhaustion begins when a Momentum Exhaustion phase completes count 9. It uses a separate set of price conditions to track the continuation of exhaustion toward a terminal phase. The Terminal Exhaustion phase progresses independently and can include an additional validation/failure condition during its progression.

Upon completion of Momentum Exhaustion, the framework can project dynamic Support & Resistance levels derived from the completed phase. These levels remain active until price crosses the corresponding level.

Optional Invalidation Levels are provided for both Momentum Exhaustion and Terminal Exhaustion. These levels are derived from the price extremes established during the respective phase and provide a structural reference for when the exhaustion condition is considered invalidated.

Terminal Exhaustion can additionally calculate a Target Level from the price structure developed during its progression.

The optional Range Pivot framework provides higher-timeframe Support (S), Pivot (P), and Resistance (R) levels.

The timeframe can be selected manually or determined automatically according to the chart timeframe, with support for 1H, 4H, Daily, Weekly, Monthly, Quarterly, and Yearly ranges.

Optional Developing Range Pivot projects Support, Pivot, and Resistance levels from the current, still-forming range — an early, real-time preview of the next range's pivot before it closes. Optional Historical Range Pivot instead displays the completed pivot levels of prior ranges, allowing the current range to be compared against past structure.

The optional Volume Pressure Oscillator evaluates buying and selling pressure by combining price movement within each bar's range with traded volume.

The resulting oscillator is normalized to a 0–100 scale, with configurable upper and lower bands. A signal line and histogram provide additional context for changes in pressure.

The pressure calculation excludes zero-range bars and handles markets where volume data is unavailable.

An optional, repositionable Dashboard table provides a compact, at-a-glance summary of the framework's current state on the last bar:

• Momentum — which side (buy-side or sell-side) is currently progressing, and its step count out of 9
• Terminal — which side is currently progressing, and its step count out of 13
• Pivot — signed percentage distance from price to the nearest Range Pivot level
• Pressure — the current Volume Pressure ratio, shown as a buying/selling percentage split

Each row includes a tooltip with additional detail. The table can be toggled on or off and repositioned to any chart corner.

The All Sequence Steps display mode shows the progression of the Momentum and Terminal Exhaustion phases using compact sequential markers. Completed phases can instead be displayed selectively for a cleaner chart.

Volume-Weighted Bars optionally highlight bars according to their volume relative to a configurable volume moving average, helping distinguish unusually high and low volume activity.

DPR is best used as a contextual framework rather than a standalone reversal signal. Momentum Exhaustion identifies an initial state of directional overextension, while Terminal Exhaustion represents a later-stage continuation of that exhaustion process. Range Pivots, Support/Resistance, Invalidation, and Volume Pressure can be used together to assess the broader market context.

Alerts are available for:

• Momentum Exhaustion phase completion
• Terminal Exhaustion phase completion
• Momentum Exhaustion Support / Resistance crossings
• Momentum & Terminal Exhaustion invalidation level crossings
• Range Pivot level crossings
• Volume Pressure entering overbought / oversold zones
• High-volume bars

Alerts include the instrument and relevant price level where applicable.

This script is intended for informational and educational purposes only. It does not constitute financial, investment, or trading advice. All trading decisions made based on its output are solely the responsibility of the user.