MARKET REVERSAL Trading Guide

The Market Phase & Reversal is a quantitative technical analysis tool. * Market Phase & Reversal (MPR) Uses Z-Score (Price vs SMA normalized by StdDev) to detect statistical extremes and reversals. * Logic:

What does the indicator show?

• Market Structure & Momentum: Visualizes prevailing trend directions and key reversal zones.
• BUY / SELL Signals: Highlights confirmed entry and exit opportunities based on quantitative rules.
• Dynamic Boundaries: Provides adaptive levels for managing trade risk and reward expectations.

Key Settings

• Cycle Period (period): Controls the calculation period and sensitivity for market detection.
• Smoothing (smooth): Controls the calculation period and sensitivity for market detection.
• Reversal Threshold (threshold): Controls the calculation period and sensitivity for market detection.
• Show Threshold Lines (showLines): Controls the calculation period and sensitivity for market detection.
• Signal EMA Length (signalLen): Controls the calculation period and sensitivity for market detection.
• Score Value (val): Controls the calculation period and sensitivity for market detection.
• EMA Signal (signal): Controls the calculation period and sensitivity for market detection.
• Top Reversal Warning (reversalTop): Controls the calculation period and sensitivity for market detection.
• Bottom Reversal Warning (reversalBottom): Controls the calculation period and sensitivity for market detection.
• MPR Value (Score) (val): Controls the calculation period and sensitivity for market detection.
• Signal Line (EMA) (signal): Controls the calculation period and sensitivity for market detection.
• Confirmed Trend Change (Bull) (trendChangeBull): Controls the calculation period and sensitivity for market detection.
• Confirmed Trend Change (Bear) (trendChangeBear): Controls the calculation period and sensitivity for market detection.
• Early Reversal Warning (Top) (reversalTop): Controls the calculation period and sensitivity for market detection.
• Early Reversal Warning (Bottom) (reversalBottom): Controls the calculation period and sensitivity for market detection.

How to use Strategy Parameters (Condition Source)

Within the Strategy Tester module, this indicator can be used both as a direct signal source and as a market-state filter.

1. Signal Events

• trendChangeBull - Confirmed Trend Change (Bull) event signal.
• trendChangeBear - Confirmed Trend Change (Bear) event signal.
• reversalTop - Early Reversal Warning (Top) event signal.
• reversalBottom - Early Reversal Warning (Bottom) event signal.

2. Filters and Trade Levels

• period - Cycle Period value used for structural qualification or thresholds.
• smooth - Smoothing value used for structural qualification or thresholds.
• threshold - Reversal Threshold value used for structural qualification or thresholds.
• showLines - Show Threshold Lines value used for structural qualification or thresholds.
• signalLen - Signal EMA Length value used for structural qualification or thresholds.
• val - Score Value value used for structural qualification or thresholds.
• signal - EMA Signal value used for structural qualification or thresholds.
• reversalTop - Top Reversal Warning value used for structural qualification or thresholds.
• reversalBottom - Bottom Reversal Warning value used for structural qualification or thresholds.
• val - MPR Value (Score) value used for structural qualification or thresholds.
• signal - Signal Line (EMA) value used for structural qualification or thresholds.

Strategy Example: Enter Long when buySignal is true and trendFilter == 1, ensuring trades align with dominant momentum.