Momentum Reversal Engines: Complete Setup Guide
Momentum Reversal Engines is a multi-engine reversal detection system that scans for trend exhaustion across four distinct algorithmic models simultaneously. Each engine identifies unique candlestick momentum patterns at key swing points, while optional volume and fair value gap filters add layers of confluence.
What It Does
When conditions align, clear Buy or Sell labels appear on the chart alongside projected support and resistance levels. You can toggle any engine on or off to match your trading style, and built-in alert functionality ensures you are notified the moment a high-conviction reversal signal fires.
Key Features
Four Independent Reversal Engines
Run up to four proprietary detection engines at once, each calibrated for different reversal signatures. Toggle any engine on or off to match your trading style.
Volume Confirmation Filter
An optional volume filter ensures signals only fire when backed by meaningful volume participation, filtering out low-conviction setups during thin markets.
Fair Value Gap Filter
An optional FVG filter cross-references each signal against the presence of a fair value gap, adding an additional layer of confluence before confirming a reversal.
Visual Entry Zones with Alerts
Each signal plots a labeled Buy or Sell marker with projected key levels drawn as horizontal lines on the chart, accompanied by real-time alerts.
Settings & Parameters
Key settings you can configure in TradingView.
| Parameter | Type | Default | Description |
|---|---|---|---|
| Engine 1 | bool | true | Enables the first reversal detection engine, calibrated for one type of momentum exhaustion signature. |
| Engine 2 | bool | true | Enables the second reversal detection engine with a different reversal signature. |
| Engine 3 | bool | true | Enables the third reversal detection engine for another class of momentum patterns. |
| Engine 4 | bool | true | Enables the fourth reversal detection engine for the broadest coverage. |
| FVG Filter | bool | true | Cross-references each signal against the presence of a Fair Value Gap, adding institutional confluence before confirming a reversal. |
| Volume Filter | bool | true | Ensures signals only fire when backed by meaningful volume participation, filtering out low-conviction setups. |
How to Use It
Enable All Four Engines Initially
Start with all engines active to understand the full range of signals. As you gain experience, you may choose to disable engines that don't match your preferred market conditions.
Keep Both Filters Active
The FVG and Volume filters significantly improve signal quality. Both should stay enabled for the highest-conviction setups. Only disable them if you need more signal frequency.
Act on Buy/Sell Labels
When a Buy or Sell label appears, it means one or more engines detected a reversal with filter confirmation. The projected key levels provide immediate support/resistance for the trade.
Set Up Alerts
Configure alerts for both Buy and Sell signals so you can be away from the chart and still catch momentum reversals as they happen.
Best Practices
Multiple Engine Agreement is Strongest
When multiple engines fire signals at the same time, the reversal conviction is highest. Single-engine signals are still valid but carry less weight.
Use Projected Levels for Exits
The horizontal levels plotted with each signal serve as natural take-profit and stop-loss zones. Use them to structure your risk management.
Test Engine Combinations
Over time, you may find that certain engine combinations work best in specific markets. Document which engines produce the best results for your preferred instruments.
Related Indicators
Ready to Start Trading?
Get access to Momentum Reversal Engines alongside all 18 premium indicators.