Reversal Precision Index

Overview
The Reversal Precision Index (RPI) is designed to assist traders in identifying potential reversal zones and tracking market trends. This overlay indicator combines a set of dynamic price channels with a customizable trend-following band, offering a robust framework for spotting key turning points and monitoring price action. Ideal for traders seeking to enhance their decision-making process, RPI is versatile across various timeframes and asset types.

Key Features

Dynamic Price Channels: Visualizes multiple support and resistance levels based on a weighted average of price data, helping you identify areas where price reversals are likely to occur.

Trend-Following Band: Includes an adjustable band that follows price trends, providing insights into the overall market direction and potential breakout zones.

Customizable Alerts: Notifies you when price crosses key levels, allowing you to react promptly to significant market movements.

Price Labels: Displays current levels of the price channels on the chart, aiding in quick reference and analysis (optional).


Interpreting the Indicator

Reversal Zones: Look for price reactions near the channel levels, which often act as high-probability reversal points. These zones can signal potential entry or exit opportunities.

Trend Direction: The trend band provides a smoothed view of market direction. Use its position relative to price to gauge bullish or bearish momentum.