Adaptive Trend Cloud + Smart Reversal Zones [@darshakssc]

This indicator combines a volatility-adjusted trend cloud with RSI- and volume-based reversal signals to help traders visually spot potential trend continuation or reversal zones.

It’s designed to look clean, colorful, and informative — great for both beginners and experienced traders looking for chart clarity and actionable insights.

🔍 How It Works

🔵 1. Trend Cloud

1. The cloud is created using a 34-period EMA as the base and adjusted with a 14-period ATR multiplier.

2. When price is above the EMA, the cloud turns green (bullish).

3. When price is below the EMA, it turns red (bearish).

4. A neutral gray tone shows when price is inside the cloud, signaling potential indecision.

🔁 2. Smart Reversal Signal Logic

1. Signals appear only when price enters the cloud zone, indicating a potential change in direction.

2. To confirm the reversal, the following conditions must also be met:

3. RSI is below 40 (for bullish reversals) or above 60 (for bearish reversals)

4. A volume spike occurs (1.8× the 20-bar volume average)

5. A cooldown of 10 bars between signals prevents overplotting

🎯 3. TP & SL Labels

1. When a valid buy or sell signal appears:

🎯 TP (Take Profit) is placed at 2× ATR distance

🛑 SL (Stop Loss) is placed at 1× ATR distance

These levels are shown via chart labels for visual reference

🛎️ 4. Alerts

1. Built-in alerts trigger on:

🟢 Buy reversal signals

🔴 Sell reversal signals

✅ How to Use

1. Apply the indicator to any chart (works best on 5min–4h timeframes)

2. Look for the 🟢 Buy / 🔴 Sell labels when price touches the cloud

3. Use the visual TP/SL markers as reference zones — not financial advice

4. Combine with your own risk management, price action or confluence tools

⚙️ Customization Options

1. EMA & ATR lengths and multipliers

2. RSI and volume thresholds

3. Signal cooldown to reduce noise

4. Toggle TP/SL zones on or off

⚠️ Disclaimer

This script is for educational purposes only and does not constitute financial advice. Always test on demo accounts and combine with your own trading system.