Reversal Detection Oscillator (HuntsPip)

Reversal Detection Oscillator (HuntsPip) combines RSI, momentum, and price change into a single composite oscillator that highlights when all components move into extended territory simultaneously, marking potential areas where pullbacks may occur. It provides a multi-factor exhaustion filter that requires agreement across three independent measures before signaling, reducing false readings common with single-indicator approaches and offering early warning when momentum, strength, and price velocity all reach stretched levels together.


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█ CONCEPTS

Many oscillators measure a single dimension of price behavior - either momentum, relative strength, or rate of change in isolation. This tool takes a different approach by blending three distinct measures into one composite reading. By combining these components, the oscillator aims to identify conditions where price extension, momentum, and relative strength all agree that the market has moved significantly in one direction.

The key insight is in the threshold system. When the composite value moves beyond a configurable threshold, it enters a "watch zone" - an area where the extended readings suggest the current move may be stretched. When all three underlying components simultaneously cross the threshold in the same direction, the oscillator marks this as a point of heightened attention. These markers do not predict reversals with certainty, but they flag conditions where pullbacks have historically been more likely to occur.


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█ WHAT IT DOES

This tool plots a composite line in a separate oscillator pane below the chart. The line oscillates around a zero centerline, with upper and lower threshold levels marking the boundary between the normal range and the watch zones. Within the normal range, the fill between the line and the zero line uses one color. When the line crosses into a watch zone, the fill beyond the threshold changes to a second color, providing a clear visual distinction.

When all underlying components simultaneously cross the threshold in the same direction for the first time, a triangle marker appears. Upward-pointing triangles appear at the bottom when all components cross below the lower threshold, and downward-pointing triangles appear at the top when all cross above the upper threshold. A subtle background highlight reinforces these conditions while they persist.


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█ FEATURES AND USAGE

OSCILLATOR SETTINGS

• Threshold - Sets the distance from the zero line that defines the watch zone boundary. Range: 1-30. Lower values produce more frequent signals; higher values produce fewer but potentially more significant ones. Recommended range is 15-20.
  
  
• Range - Color for the oscillator line and fill when the composite value is within the normal range (between the thresholds).
  
  
• Watch Zones - Color for the oscillator line and fill when the composite value moves beyond the threshold into extended territory.
  
  
• Markers - Color for the triangle markers that appear when all three components simultaneously cross the threshold.
  
  
• Show Fill - Toggles the colored fill between the composite line and the zero line.
  

This tool works on any instrument and any timeframe. The composite oscillator is best used to identify stretched conditions where the market may be due for a pause or pullback, not as a standalone reversal signal. Watch zone readings and markers are most useful when combined with chart-based analysis - such as key levels, order blocks, or session ranges - to provide timing context within a broader framework.