Reversal Strength Meter – Adib Noorani

The Reversal Strength Meter is an oscillator designed to identify potential reversal zones based on supply and demand dynamics. It uses smoothed stochastic logic to reduce noise and highlight areas where momentum may be weakening, signaling possible market turning points.

🔹 Smooth, noise-reduced stochastic oscillator
🔹 Custom zones to highlight potential supply and demand imbalances
🔹 Non-repainting, compatible across all timeframes and assets
🔹 Visual-only tool — intended to support discretionary trading decisions

This oscillator assists scalpers and intraday traders in tracking subtle shifts in momentum, helping them identify when a market may be preparing to reverse — always keeping in mind that trading is based on probabilities, not certainties.

📘 How to Use the Indicator Efficiently
For Reversal Trading:

Buy Setup
– When the blue line dips below the 20 level, wait for it to re-enter above 20.
– Look for reversal candlestick patterns (e.g., bullish engulfing, hammer, or morning star).
– Enter above the pattern’s high, with a stop loss below its low.

Sell Setup
– When the blue line rises above the 80 level, wait for it to re-enter below 80.
– Look for bearish candlestick patterns (e.g., bearish engulfing, inverted hammer, or evening star).
– Enter below the pattern’s low, with a stop loss above its high.

🛡 Risk Management Guidelines
Risk only 0.5% of your capital per trade

Book 50% profits at a 1:1 risk-reward ratio

Trail the remaining 50% using price action or other supporting indicators