Momentum-Reversal System Signals Pro

Momentum-Reversal System Signals Pro
Overview
A sophisticated signaling system designed to identify high-probability trend-following entries after a price pullback. This indicator is optimized for index futures like the S&P 500 (ES/SPX) on a 5-minute timeframe.
It performs best during periods of established trends and lower volatility. To aid in this, the indicator includes a customizable "No-Trade Zone" highlighter, which is pre-set to the often volatile 8:30 AM - 11:30 AM EST market open. While the default settings are robust and effective in most conditions, the indicator is fully customizable to suit your specific trading style.
How It Works
The core logic is based on a three-step process to filter for high-quality setups:

1. Trend Confirmation: The script first establishes the overall market direction using an EMA on a higher timeframe (15-minute by default). This ensures you are only looking for trades that align with the dominant trend.
   
2. Pullback Detection: Once the trend is confirmed, the script waits for the price to pull back to a dynamic area of value on the main chart (5-minute by default). This "pullback zone" is defined by the 5m EMA and an ATR-based channel around it, which adapts to current market volatility.
   
3. Momentum Entry: After a valid pullback occurs, the script waits for a clear sign that momentum is returning in the direction of the primary trend. This is confirmed by a combination of a MACD crossover and a strong RSI reading, signaling that the pullback has likely ended and the trend is ready to resume.
   

Advanced Quality Filters
What makes this indicator powerful is its multi-layered filtering system designed to weed out low-probability signals and avoid choppy market conditions.

• [] Trend Strength: It doesn't just check the trend direction; it measures the slope of the 15m EMA to ensure the trend has sufficient strength. This is a key filter for avoiding flat, sideways markets.
  [] Momentum Confirmation: An RSI "Dead Zone" around the 50-level ensures that the RSI shows decisive momentum before a signal is generated.
  [] Signal Cooldown: A built-in timer (Min Bars Between Signals) prevents the same signal from firing repeatedly in a short period, reducing noise and over-trading.
  [] RSI Volatility: The script checks that the RSI itself is not flat, which is often a sign of market indecision and a precursor to chop.
  [] Pullback Quality: An optional filter ensures that by the time the signal fires, the price has already moved back to the "correct" side of the 5m EMA, confirming the reversal's strength.
  [] Volatility Filter: A crucial risk management filter that blocks signals on abnormally large, high-risk "gasoline" bars that could lead to immediate stops.
  

How To Use
For Long Signals (Green 'Long' Tag):

• [] Look for the 15m EMA to be green and trending upwards.
  [] Wait for price to pull back towards the orange 5m EMA.
  
• A "Long" signal appears when momentum indicators confirm a reversal back in the direction of the trend.
  

For Short Signals (Red 'Short' Tag):

• [] Look for the 15m EMA to be red and trending downwards.
  [] Wait for price to pull back towards the orange 5m EMA.
  
• A "Short" signal appears when momentum indicators confirm a reversal back in the direction of the trend.
  

This tool provides high-probability signals, not guarantees. It is designed to be a core component of a complete trading plan. Always use proper risk management and confluence from your own analysis.

Fine-Tuning & Customization
All settings are fully adjustable in the script's "Inputs" tab to match your risk tolerance and market conditions.

• [] Timeframe & EMA Settings: Adjust the core moving averages that define the trend and pullback zones.
  [] Pullback Settings: Define what constitutes a valid pullback by adjusting the lookback period and the size of the ATR-based "near" zone.
  [] Quality Filters: This is the most important section for tailoring the script's strictness. Increase the EMA Slope, RSI Dead Zone, or Signal Cooldown to receive fewer but potentially higher-quality signals.
  [] Advanced Filters: Enable or disable the Pullback Quality and Volatility filters for an extra layer of confirmation or risk management.
  
• No-Trade Zone Highlighter: Adjust the session and timezone to highlight periods you wish to avoid, such as news events or low-liquidity hours.
  

Happy trading, and please use this tool responsibly.