Reversal Market Structure
Detects complete market structure reversal patterns by analyzing sequences of structure breaks, with optional FVG confluence filtering.
Sensitivity
3 levels
Markets
All
Style
Overlay
Alerts
Built-in
Overview
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. 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 it to your trading style.
How It Works
Reversal Market Structure tracks the sequence of Break of Structure (BoS) and Change of Character (ChoCh) events to identify when the market has completed a full reversal pattern -- not just a single structure break. The algorithm monitors swing highs and lows using configurable pivot detection with two methods: Close-based (which uses closing prices for swing identification) and High/Low-based (which uses absolute price extremes).
For a bullish reversal to be confirmed, the indicator requires a sequence where two consecutive bearish structure breaks (establishing a downtrend) are followed by a ChoCh that reclaims the most recent lower high, and then price breaks above the swing high formed after the second bearish BoS. The full swing path through these key points is drawn as a multi-segment zigzag with a directional arrow at the confirmation break. Bearish reversals follow the mirror logic.
By default, the FVG confluence filter is enabled, meaning reversals are only displayed when a Fair Value Gap exists within the reversal structure. This ensures that every marked reversal contains an institutional imbalance -- a gap left by aggressive order flow -- adding a layer of confluence that filters out weaker structure shifts. Three sensitivity levels (Minor, Intermediate, Major) control the swing detection lookback, letting you tune the indicator for anything from intraday scalping to swing trading.
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.
Common Trading Setups
Practical ways to trade with Reversal Market Structure.
Reversal Confirmation Entry
Enter at the confirmation point of a complete reversal pattern, where the trend has fully shifted direction with structural proof.
- 1Wait for the indicator to draw a complete reversal zigzag with an arrow label (Bull or Bear Market Structure).
- 2Identify the Fair Value Gap drawn within the reversal structure (if the FVG filter is enabled).
- 3Enter in the reversal direction on the confirmation candle or on a pullback to the FVG zone.
- 4Place your stop-loss beyond the lowest swing point in a bullish reversal (or highest in a bearish reversal).
- 5Target the origin of the previous trend leg or the next significant structure level.
FVG Retest Within Reversal Structure
After a reversal is confirmed, price often retraces to fill the Fair Value Gap within the structure before continuing in the new direction.
- 1After a reversal signal fires, mark the FVG zone that was drawn within the reversal structure.
- 2Wait for price to retrace back into the FVG zone.
- 3Enter when price shows rejection at the FVG boundary (wick rejection, engulfing pattern).
- 4Place your stop-loss beyond the opposite edge of the FVG.
- 5Target the swing high/low that the reversal arrow pointed toward.
Settings Reference
Key settings you can configure in TradingView. See the full setup guide for detailed walkthroughs.
| 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. |
Pro Tips
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.
Frequently Asked Questions
Standard BoS/ChoCh indicators mark individual structure break events in isolation. Reversal Market Structure waits for a complete sequence -- multiple structure breaks that confirm a genuine trend reversal. A single ChoCh can be a false signal, but a full reversal sequence (two bearish BoS events followed by a bullish ChoCh and confirmation break, or vice versa) provides much higher-probability reversal identification.
When enabled (the default), the indicator only displays reversal patterns that contain a Fair Value Gap somewhere within the swing structure. This filters out reversals formed purely from candle closes and keeps only those with an institutional imbalance signature. Disabling this toggle shows all qualifying reversal patterns regardless of FVG presence, which increases signal frequency but may reduce average quality.
Close-based detection identifies swing points using closing prices, which tends to produce more precise and selective structure identification since wicks are ignored. High/Low-based detection uses the absolute high and low of each candle, which casts a wider net and captures more swing points. Close-based is generally preferred for cleaner signals on volatile instruments, while High/Low works well on smoother trending markets.
Minor (3-bar lookback) detects smaller swings and works best on lower timeframes (1m-15m) for intraday reversals. Intermediate (5-bar) is a balanced setting for 15m-4H charts. Major (10-bar) detects only significant swing points and is suited for 4H-Daily charts where you want to catch major trend reversals. Start with Minor on lower timeframes and Intermediate on higher timeframes.
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