Overview

🔄 Indicator Overview

EZ Reversals is an overlay indicator that displays directly on your price chart. It combines multiple reversal detection methods to help traders spot potential turning points before they occur.

🔍 Features:

  • Multiple Reversal Signal Sets: Three distinct algorithms for both top and bottom reversals

  • TD 8/9 Signals: Time-based exhaustion signals

  • Swing Failure Pattern Detection: Identifies failed breakouts that often precede reversals

  • Exhaustion Candles: Highlights candles that suggest trend exhaustion

  • Reversal Bands: Volatility-based bands to spot overextended price movement

⚙️ Designed to work across all markets and timeframes.

🧩 Core Components

🔁 Reversal Signal Sets

EZ Reversals includes three signal sets for both top and bottom reversals. Each set uses a different algorithmic approach to detecting turning points:

🔸 Set 1

  • Based on price action relative to volatility bands

  • More sensitive – triggers more frequent signals

  • Best for early detection of potential reversals

Set 1 Top Alerts

🔸Set 2 Moderate sensitivity with fewer false signals Good balance between reliability and responsiveness

Set 2 Top Alerts

🔸Set 3

Uses Multiple calculations Most conservative approach with fewer but stronger signals Best for identifying major reversal points

Set 3 Top Alerts

🔄 Reversal Signal Sets

Each set provides a different perspective on potential reversals, and traders can choose which ones to display based on their trading style and risk tolerance.

📊 Reversal Bands

The Reversal Bands feature creates adaptive bands that expand and contract based on market volatility:

  • Upper Bands – Identify potential resistance and overbought conditions

  • Middle Band – Represents equilibrium price

  • Lower Bands – Identify potential support and oversold conditions

🧠 The bands use a proprietary calculation that incorporates multiple periods to create an adaptive volatility channel. When price approaches or crosses these bands, it can signal potential reversal conditions.

Reversal Bands

🟥 Top Reversal Signals

The indicator includes several methods to identify potential market tops:

🔸 Top Reversal Set 1 🔴

  • Appears when price crosses under a calculated upper threshold

  • Shows as a red X at the top of a candle

  • Most sensitive of the top signals

🔸 Top Reversal Set 2 🔴

  • Appears when the indicator calculation crosses below its bear threshold

  • Shows as a "T" label above the candle

  • Moderate sensitivity

🔸 Top Reversal Set 3 🔴

  • Shows as a "T" label above the candle

  • Most conservative signal, typically indicating stronger reversal potential

🔸 TD 8/9 Sell Signals

  • Shows "8" and "9" labels when a sell sequence is completed

  • "9" signals are particularly significant as potential exhaustion points

🔸Swing Failure Pattern (High)

Detects when price fails to continue higher after making a new high Shows as "S.F" label with a red triangle Signals potential failed breakouts that often lead to reversals

🔸Exhaustion High Candles

Identifies candles that show exhaustion in uptrends Shows as "H" label at highs Signals potential buying climax before reversals

🟩 Bottom Reversal Signals Similar to top signals, EZ Reversals includes methods to identify potential market bottoms: 🔸Bottom Reversal Set 1 🟢

Appears when price crosses over a calculated lower threshold Shows as a green X at the bottom of a candle Most sensitive of the bottom signals

Bottom Alert Set 1

🔸Bottom Reversal Set 2 🟢

Appears when the CVI indicator crosses above its bull threshold Shows as a "B" label below the candle Moderate sensitivity

Bottom Alert Set 2

🔸Bottom Reversal Set 3 🟢

Appears when price crosses over the lower Bollinger Band Shows as a "B" label below the candle Most conservative signal, typically indicating stronger reversal potential

Bottom Alert Set 3

🔸TD 8/9 Buy Signals

Shows "8" and "9" labels when a buy sequence is completed "9" signals are particularly significant as potential accumulation points

TD 8/9 Buy Signals

🔸Swing Failure Pattern (Low)

Detects when price fails to continue lower after making a new low Shows as "S.F" label with a green triangle Signals potential failed breakdowns that often lead to reversals

Swing Fail Pattern Lows

🔸Exhaustion Low Candles

Identifies candles that show exhaustion in downtrends Shows as "L" label at lows Signals potential selling climax before reversals

🔢 TD Sequence

🔸 TD Buy Signals (8/9)

Appear during downtrends when price closes lower than the close 4 bars earlier for a sequence of 8 or 9 consecutive bars:

  • TD 8 Buy: Shows a blue "8" label below a candle, indicating a potential buy signal approaching

  • TD 9 Buy: Shows a blue "9" label below a candle, indicating a completed buy signal

🔸 TD Sell Signals (8/9)

Appear during uptrends when price closes higher than the close 4 bars earlier for a sequence of 8 or 9 consecutive bars:

  • TD 8 Sell: Shows a red "8" label above a candle, indicating a potential sell signal approaching

  • TD 9 Sell: Shows a red "9" label above a candle, indicating a completed sell signal

💡 TD signals are particularly useful for identifying potential exhaustion points in established trends, where the market may be overextended and due for a correction or reversal.

🔁 Swing Failure Pattern (SFP)

The Swing Failure Pattern detector identifies instances where the market attempts to make a new high or low but fails to sustain the move, often leading to a reversal:

📉 Swing Failure at Highs

  • Occurs when price makes a new high but fails to hold above the previous high

  • Shows as "S.F" label with a red triangle above the candle

  • Often indicates seller rejection of higher prices

📈 Swing Failure at Lows

  • Occurs when price makes a new low but fails to hold below the previous low

  • Shows as "S.F" label with a green triangle below the candle

  • Often indicates buyer support at lower prices

✅ SFPs are particularly valuable signals as they represent actual supply and demand imbalances in the market, where one side (buyers or sellers) has temporarily run out of momentum.

🕯️ Exhaustion Candles

Exhaustion candles identify specific price action patterns that often occur at market turning points:

🔺 Exhaustion High Candles

  • Identifies candles that show characteristics of buying exhaustion

  • Looks for a specific pattern where price has risen significantly but closes lower

  • Shows as "H" label at identified exhaustion points

🔻 Exhaustion Low Candles

  • Identifies candles that show characteristics of selling exhaustion

  • Looks for a specific pattern where price has fallen significantly but closes higher

  • Shows as "L" label at identified exhaustion points

💡 These signals are valuable for identifying potential climactic moves, where the last buyers or sellers may be entering the market, setting up conditions for a reversal.

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