OPEN-SOURCE SCRIPT
Adaptive Trend Cloud + Smart Reversal Zones [@darshakssc]
This indicator combines a volatility-adjusted trend cloud with RSI- and volume-based reversal signals to help traders visually spot potential trend continuation or reversal zones.
It’s designed to look clean, colorful, and informative — great for both beginners and experienced traders looking for chart clarity and actionable insights.
🔍 How It Works
🔵 1. Trend Cloud
1. The cloud is created using a 34-period EMA as the base and adjusted with a 14-period ATR multiplier.
2. When price is above the EMA, the cloud turns green (bullish).
3. When price is below the EMA, it turns red (bearish).
4. A neutral gray tone shows when price is inside the cloud, signaling potential indecision.
🔁 2. Smart Reversal Signal Logic
1. Signals appear only when price enters the cloud zone, indicating a potential change in direction.
2. To confirm the reversal, the following conditions must also be met:
3. RSI is below 40 (for bullish reversals) or above 60 (for bearish reversals)
4. A volume spike occurs (1.8× the 20-bar volume average)
5. A cooldown of 10 bars between signals prevents overplotting
🎯 3. TP & SL Labels
1. When a valid buy or sell signal appears:
🎯 TP (Take Profit) is placed at 2× ATR distance
🛑 SL (Stop Loss) is placed at 1× ATR distance
These levels are shown via chart labels for visual reference
🛎️ 4. Alerts
1. Built-in alerts trigger on:
🟢 Buy reversal signals
🔴 Sell reversal signals
✅ How to Use
1. Apply the indicator to any chart (works best on 5min–4h timeframes)
2. Look for the 🟢 Buy / 🔴 Sell labels when price touches the cloud
3. Use the visual TP/SL markers as reference zones — not financial advice
4. Combine with your own risk management, price action or confluence tools
⚙️ Customization Options
1. EMA & ATR lengths and multipliers
2. RSI and volume thresholds
3. Signal cooldown to reduce noise
4. Toggle TP/SL zones on or off
⚠️ Disclaimer
This script is for educational purposes only and does not constitute financial advice. Always test on demo accounts and combine with your own trading system.
It’s designed to look clean, colorful, and informative — great for both beginners and experienced traders looking for chart clarity and actionable insights.
🔍 How It Works
🔵 1. Trend Cloud
1. The cloud is created using a 34-period EMA as the base and adjusted with a 14-period ATR multiplier.
2. When price is above the EMA, the cloud turns green (bullish).
3. When price is below the EMA, it turns red (bearish).
4. A neutral gray tone shows when price is inside the cloud, signaling potential indecision.
🔁 2. Smart Reversal Signal Logic
1. Signals appear only when price enters the cloud zone, indicating a potential change in direction.
2. To confirm the reversal, the following conditions must also be met:
3. RSI is below 40 (for bullish reversals) or above 60 (for bearish reversals)
4. A volume spike occurs (1.8× the 20-bar volume average)
5. A cooldown of 10 bars between signals prevents overplotting
🎯 3. TP & SL Labels
1. When a valid buy or sell signal appears:
🎯 TP (Take Profit) is placed at 2× ATR distance
🛑 SL (Stop Loss) is placed at 1× ATR distance
These levels are shown via chart labels for visual reference
🛎️ 4. Alerts
1. Built-in alerts trigger on:
🟢 Buy reversal signals
🔴 Sell reversal signals
✅ How to Use
1. Apply the indicator to any chart (works best on 5min–4h timeframes)
2. Look for the 🟢 Buy / 🔴 Sell labels when price touches the cloud
3. Use the visual TP/SL markers as reference zones — not financial advice
4. Combine with your own risk management, price action or confluence tools
⚙️ Customization Options
1. EMA & ATR lengths and multipliers
2. RSI and volume thresholds
3. Signal cooldown to reduce noise
4. Toggle TP/SL zones on or off
⚠️ Disclaimer
This script is for educational purposes only and does not constitute financial advice. Always test on demo accounts and combine with your own trading system.
开源脚本
秉承TradingView的精神，该脚本的作者将其开源，以便交易者可以查看和验证其功能。向作者致敬！您可以免费使用该脚本，但请记住，重新发布代码须遵守我们的网站规则。
免责声明
这些信息和出版物并非旨在提供，也不构成TradingView提供或认可的任何形式的财务、投资、交易或其他类型的建议或推荐。请阅读使用条款了解更多信息。
开源脚本
秉承TradingView的精神，该脚本的作者将其开源，以便交易者可以查看和验证其功能。向作者致敬！您可以免费使用该脚本，但请记住，重新发布代码须遵守我们的网站规则。
免责声明
这些信息和出版物并非旨在提供，也不构成TradingView提供或认可的任何形式的财务、投资、交易或其他类型的建议或推荐。请阅读使用条款了解更多信息。