Aurora Reversal Suite: Liquidity & Inversion Model

Concept & Methodology The Aurora Reversal Suite is not a general-purpose indicator; it is a hard-coded algorithmic implementation of a specific institutional reversal model often referred to as the "2022 Mentorship Model" or "Sweep-to-Inversion" setup.

While many scripts display Liquidity Sweeps or Fair Value Gaps individually, this script solves the problem of "confluence fatigue" by algorithmically enforcing a strict order of operations. It does not alert on every sweep; it alerts only when a specific sequence of price action events occurs in a verified order.

The Algorithmic Logic (How it Works) The core value of this script lies in its conditional filtering logic, which automates the following manual verification process:

Event A: Liquidity Sweep

The script first monitors key institutional levels: Previous Day High/Low, Session High/Low (Asia/London/NY), and dynamic Swing Points.

It detects a "Sweep" event when price breaches a level but fails to close beyond it (or closes back inside within a defined lookback period).

Event B: Displacement & Inversion

Unlike standard FVG indicators, this script searches specifically for Inversion FVGs (iFVG) that form immediately following the sweep event.

The script logic requires that the iFVG be created by the displacement leg that reverses the sweep. This binds the "Entry Signal" directly to the "Liquidity Event."

Event C: Algorithmic Filtering (The "Strict" Mode)

To filter out false positives common in choppy markets, the script applies a multi-layer filter before printing a signal:

Volume Qualification: The signal bar's volume must exceed a user-defined multiple of the N-period average volume (default 1.5x) to confirm institutional participation.

SMT Divergence Filter: The script cross-references a correlated asset (e.g., NQ vs. ES or EU vs. DXY). If enabled, a signal is only valid if the correlated asset failed to make a matching high/low at the moment of the sweep (SMT Divergence).

Bias Alignment: The script calculates directional bias using a waterfall logic (Daily > 4H > 1H). Signals counter to this calculated bias are suppressed in "Strict" mode.

Included Features & Components

Automated Market Structure: Real-time labeling of BOS (Break of Structure) and MSS (Market Structure Shift) based on swing point logic.

Session Killzones: Visual boxes for Asia, London, and NY sessions with auto-extending high/low lines to track session liquidity.

Multi-Timeframe Dashboard: A calculated table displaying the trend state of the Daily, 4H, and 1H timeframes to assist with top-down analysis.

Power of 3 (PO3) Overlay: Visualization of higher-timeframe candle geometry on lower-timeframe charts to identify accumulation/distribution phases.

Why This Mashup is Necessary Attempting to trade this specific reversal model using separate indicators results in chart clutter and conflicting signals. By combining the Sweep detection, iFVG creation, and SMT filtering into a single codebase, we can programmatically eliminate "naked" sweeps that have no displacement, providing a cleaner and more objective view of the market structure.

Settings & Customization

Signal Mode: Choose between "Simple" (Price Action only) or "Strict" (Trend + Volume filtered).

SMT Input: Manually define the correlated asset ticker for divergence checks.

Visuals: Fully customizable colors for Bullish/Bearish scenarios to fit light or dark themes.

Disclaimer This script is a tool for market analysis and does not guarantee future results. It is intended to assist traders in identifying high-probability setups based on historical price action concepts.