OPEN-SOURCE SCRIPT
TX Smooth Reversal
Overview:
The CDSA Smooth Reversal is a quantitative trading tool designed to identify high-probability price exhaustion and reversal points. By combining Multi-Timeframe (MTF) alignment with a sophisticated Band Engine based on KAMA (Kaufman Adaptive Moving Average), this indicator filters out market noise and focuses on institutional-grade reversal zones.
Key Features:
KAMA-Adaptive Bands: Unlike standard Bollinger Bands, our bands use an Efficiency Ratio (ER) to adapt to market volatility, expanding during trends and contracting during consolidations.
Probabilistic Reversal Scoring: A proprietary logic that calculates the likelihood of a reversal based on price deviation, volume characteristics, and trend exhaustion.
MTF Fusion Gate: Ensures that signals only appear when multiple timeframes (Micro, Operational, and Regime) are in alignment, significantly reducing false signals.
Heikin Ashi Integration: Optional HA logic processing to smooth out erratic price action for long-term trend analysis.
Live Dashboard: Real-time monitoring of Bull/Bear reversal probabilities and MTF status directly on your chart.
How to Trade:
Bullish Reversal (BUY): Look for the "BUY" label when the Bull Probability is high (>75%) and price touches the lower outer bands.
Bearish Reversal (SELL): Look for the "SELL" label when the Bear Probability is high (>75%) and price reaches the upper outer bands.
MTF Confirmation: Ensure the "MTF Alignment" on the dashboard matches your trade direction for the highest win-rate setups.
Settings:
Algorithm Mode: Choose between Conservative (fewer, higher quality signals), Normal, or Aggressive.
Alignment Threshold: Adjust how strictly the different timeframes must agree before a signal is triggered.
The CDSA Smooth Reversal is a quantitative trading tool designed to identify high-probability price exhaustion and reversal points. By combining Multi-Timeframe (MTF) alignment with a sophisticated Band Engine based on KAMA (Kaufman Adaptive Moving Average), this indicator filters out market noise and focuses on institutional-grade reversal zones.
Key Features:
KAMA-Adaptive Bands: Unlike standard Bollinger Bands, our bands use an Efficiency Ratio (ER) to adapt to market volatility, expanding during trends and contracting during consolidations.
Probabilistic Reversal Scoring: A proprietary logic that calculates the likelihood of a reversal based on price deviation, volume characteristics, and trend exhaustion.
MTF Fusion Gate: Ensures that signals only appear when multiple timeframes (Micro, Operational, and Regime) are in alignment, significantly reducing false signals.
Heikin Ashi Integration: Optional HA logic processing to smooth out erratic price action for long-term trend analysis.
Live Dashboard: Real-time monitoring of Bull/Bear reversal probabilities and MTF status directly on your chart.
How to Trade:
Bullish Reversal (BUY): Look for the "BUY" label when the Bull Probability is high (>75%) and price touches the lower outer bands.
Bearish Reversal (SELL): Look for the "SELL" label when the Bear Probability is high (>75%) and price reaches the upper outer bands.
MTF Confirmation: Ensure the "MTF Alignment" on the dashboard matches your trade direction for the highest win-rate setups.
Settings:
Algorithm Mode: Choose between Conservative (fewer, higher quality signals), Normal, or Aggressive.
Alignment Threshold: Adjust how strictly the different timeframes must agree before a signal is triggered.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.