Commodity Heat Reversal v1.4.3
Score-based mean-reversion reversal and pullback-continuation signal indicator for commodity futures (designed for 4H). It quantifies how much evidence points to an overextended, exhausted move — distance from MA50, ATR expansion, RSI extremes, wick pressure, and Bollinger Band breach — and fires a long or short signal when the score crosses a threshold and a bar-close confirmation triggers.
The indicator also tracks an optional higher-timeframe EMA bias. When a heat setup happens as a pullback inside the higher-timeframe trend, it can mark a separate PB continuation signal instead of treating the move only as a local reversal.
Features
- Dual Heat Score — independent long and short scores (0–7 points each), built from five components
- Score components — ATR distance to MA50 (2 pts), ATR expansion (2 pts), RSI extreme (1 pt), wick pressure (1 pt), BB breach (1 pt)
- Confirmation gate — signal requires close beyond previous bar’s range or MA9
- Quality gate — selectable Early / Balanced / Strict confirmation plus same-direction cooldown
- Countertrend handling — show, mark, or hide weak non-extreme countertrend reversals
- Trend filter — optional MA200 direction filter with configurable override at extreme scores
- HTF bias — optional higher-timeframe EMA direction and slope context
- Pullback continuation — optional diamond signals when a heat pullback resolves back in aligned local/HTF trend
- Selectable MA smoothing — EMA / RMA / SMA / WMA / HMA / JMA (default HMA) for all MAs
- SL/TP overlay — swing-high/low stop + MA20 mean-reversion target drawn on signal bars
- Score dashboard — table showing current long/short score, active signal, trend direction, HTF bias, RSI
- Alerts — alert conditions for reversal, pullback-continuation, and any signal
Scoring
| Component | Points | Short condition | Long condition |
|---|---|---|---|
| ATR distance | 2 | close > ma50 + 2.5×atr14 |
close < ma50 − 2.5×atr14 |
| ATR expansion | 2 | atr14 > atr50 × 1.5 |
same |
| RSI extreme | 1 | rsi > 72 |
rsi < 28 |
| Wick pressure | 1 | upper wick > 35% of candle range | lower wick > 35% |
| BB breach | 1 | close > bbUpper |
close < bbLower |
Default threshold: 4/7. Extreme threshold (for counter-trend override): 6/7.
Quality Gate
Counter-trend reversal signals use Balanced confirmation by default:
- Early — original confirmation: close beyond prior bar or MA9
- Balanced — close beyond MA9 plus prior-bar break or wick pressure
- Strict — candle direction, MA9 reclaim/loss, prior-bar break, and wick pressure
Default same-direction cooldown: 3 bars.
Weak countertrend reversals can be displayed in three modes:
- Show — plot them as normal reversal triangles
- Mark — plot them as small x markers instead of normal signals
- Hide — suppress them unless the heat score is extreme. This is the default.
Pullback Continuation
Continuation signals are separate from the original reversal signals:
- Long PB — MA20 above rising MA50, HTF up bias, recent MA20/MA50 pullback with heat or RSI reset, then bullish close above MA9 / prior high
- Short PB — MA20 below falling MA50, HTF down bias, recent MA20/MA50 pullback with heat or RSI reset, then bearish close below MA9 / prior low
Default pullback heat threshold: 2/7. Default lookback: 12 bars. Default PB cooldown: 8 bars.
Stop / Take-Profit
- SL — 10-bar swing high/low ±
slAtrMult × atr14(default 1.2×) - TP — MA20 (mean reversion target); dynamic, follows price