CHoCH Reversal Hunter

🔥 CHoCH Reversal Hunter — Detect Bearish CHoCH Patterns & Fibonacci Golden Zone For Precision Reversal Setups

📈 Overview
CHoCH Reversal Hunter is a Pine Script™ indicator for structured bearish market analysis.
It combines major/minor pivot detection, Change of Character (CHoCH) filtering, and logarithmic Fibonacci retracements into one framework.
The goal: identify Small LL → CHoCH → Golden Zone setups with higher precision.

🧠 Core Logic
1. 📊 Market Structure Backbone

• Tracks the 4 most recent major highs (H0–H3) and 3 major lows.
  
• These pivots form the basis for trend evaluation.

2. 🔻 Bearish Background Conditions
A bearish market context is confirmed when:

// Bearish Background Condition
isBearish = (High 3 < High 2) and (
     (High 2 > High 1 and High 2 < High 0) or
     (High 2 <= High 1)
)
// Reset to neutral if High 2 < High 3

This ensures that only a true lower-high structure activates the bearish framework.


3. 🎯 Hunt for Small Lower Low (LL)

• Monitors minor pivot lows with a smaller lookback period.
  
• A valid Small LL must break below the third major low (Low 2).
  
• This Small LL becomes the 0% Fibonacci anchor.
  

4. 🔄 Change of Character (CHoCH) Selection
The indicator scans recent bars for three possible CHoCH patterns:

// CHoCH Type Definitions in CHoCH Hunter
// Inside → current bar inside previous bar
isInsideBar = high < high[1] and low > low[1]
// Smarty → short-term reversal clue
isSmartyBar = low[1] > low[2] and low < low[1]
// Pivot → minor swing high (small swing detection)
isSmallPivotHigh = ta.pivothigh(high, small_swing_period, small_swing_period)

Filter rules for validity:

• CHoCH must occur before the Small LL bar.
  
• Its high must be greater than the Small LL bar’s high (dominance criterion).
  

5. ⚡ Confirmation & Fibonacci Activation

• Once price crosses above the selected CHoCH → setup confirmed.
  
• Fibonacci retracements (logarithmic scale) are calculated:
  

100% → current high (dynamic, updates before breach).
65% → Golden Zone upper boundary.
50% → Golden Zone lower boundary.
0% → Small LL anchor.

6. 📈 Dynamic Management & Reset Rules

• Before 50% breach → Fibo High auto-updates with new highs.
  
• After breach → Levels freeze.
  

Setup resets if:

• Price drops below Small LL.
  
• Price breaks beyond frozen levels.
  
• New Small LL formation detected.
  

✨ Key Features

• 📍 Automatic detection of major & minor pivots.
  
• 🔍 Clear definitions for Inside, Smarty, Pivot CHoCHs.
  
• 📐 Logarithmic Fibonacci retracements for exponential markets.
  
• 🎯 Golden Zone highlighting (50%–65%).
  
• 🔄 Built-in reset logic to invalidate weak setups.
  

🎨 Visualization

• Pivot markers for Major (📕) & Minor (📘) swings.
  
• Labels for CHoCH points with type (“Inside”, “Smarty”, “Pivot”).
  
• Golden Zone highlighted between 50%–65%.
  
• Optional structure labels for clarity.
  

⚙️ Inputs & Customization

• Major Structure Period (default: 4) — sensitivity for big swings.
  
• Minor Structure Period (default: 2) — sensitivity for small swings.
  
• Toggle display of pivots, structure labels, and Golden Zone.
  

📚 Educational Value
CHoCH Reversal Hunter is designed to help traders learn:

• How bearish structures are objectively defined.
  
• Different CHoCH types and how to filter them.
  
• Applying Fibonacci retracements in structured setups.
  

⚠️ Risk Disclaimer
🚨 This indicator is for educational purposes only and does not constitute financial advice.
Trading involves significant risk — always backtest and apply sound risk management.

🆕 Release Notes v1.0

• Bearish structure detection logic added.
  
• CHoCH type classification (Inside, Smarty, Pivot).
  
• Logarithmic Fibonacci retracement with Golden Zone.
  
• Automatic reset & invalidation rules.
  

💡 Pro Tip: Watch for the sequence Bearish Background → Small LL → CHoCH → Golden Zone — this is the core hunting pattern of CHoCH Reversal Hunter.