Reversal Market Structure: Complete Setup Guide
Reversal Market Structure goes beyond marking individual Break of Structure points. It waits for a confirmed reversal pattern -a complete sequence of structure breaks that signals the trend is genuinely changing direction. The indicator traces the full swing path through the key price points and draws it as a multi-segment zigzag with a directional arrow at the confirmation break.
What It Does
By default, reversals are only displayed when a Fair Value Gap exists within the reversal structure, adding an extra layer of institutional confluence. Three sensitivity levels and two swing detection methods let you tune the indicator to your trading style.
Key Features
Complete Reversal Detection
Identifies confirmed reversal patterns requiring a full sequence of structure breaks -not just individual BoS/ChoCh marks.
FVG Confluence Filter
By default, only shows reversals that contain a Fair Value Gap within the structure -adding institutional confluence to every signal.
Zigzag Visualization
Draws the full reversal path as a multi-segment zigzag connecting the key swing points with a directional arrow at the confirmation break.
Two Swing Detection Methods
Choose Close-based swing detection for precise structure analysis or High/Low-based for wider swing identification.
In Action
Reversal Market Structure applied across different markets.
Settings & Parameters
Key settings you can configure in TradingView.
| Parameter | Type | Default | Description |
|---|---|---|---|
| Length | string | Minor | Three sensitivity levels: Major for significant reversals only, Intermediate for moderate sensitivity, Minor for catching more reversal patterns. |
| Swing Type | string | Close | Method for identifying swing points: Close uses closing prices for precise structure, High/Low uses wicks for wider swing detection. |
| Show FVG Only Structure | bool | true | When enabled, only shows reversals containing a Fair Value Gap within the structure for higher-quality signals. |
| Draw FVG | bool | true | Draws the Fair Value Gap within the reversal structure when one is present. |
| Compact Labels | bool | true | Uses compact label formatting to reduce visual clutter on the chart. |
How to Use It
Understand Reversal Confirmation
Unlike simple BoS/ChoCh indicators, this requires a complete reversal sequence. You'll see a zigzag pattern drawn only when the full structural reversal is confirmed, reducing false signals.
Keep FVG Filter Enabled
The FVG confluence filter is enabled by default for good reason. Reversals containing a Fair Value Gap have significantly higher follow-through rates because they indicate institutional participation.
Read the Directional Arrow
The arrow at the end of the zigzag pattern shows the new trend direction after the reversal confirms. This is your signal to align your trades with the emerging trend.
Use the FVG as an Entry Zone
When the Draw FVG option is enabled, the highlighted gap area within the reversal structure serves as a precision entry zone for trading the new trend direction.
Best Practices
Use Close-Based Swing Detection
Close-based detection (default) produces more precise structure analysis because closing prices represent committed market opinions rather than momentary wick spikes.
Trade in the Direction of the Reversal
Once a reversal is confirmed, look for entries in the new trend direction. The FVG within the structure provides the ideal entry zone.
Combine with Higher Timeframe Trend
Reversals that align with the higher timeframe trend direction are more reliable. A bullish reversal on the 1H chart while the Daily is also bullish is a stronger signal.
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