4HR JRSX Swing Bias (RB Trading)

4HR JRSX Swing Bias (RB Trading)

The 4HR JRSX Swing Bias is a higher timeframe swing analysis script designed to evaluate directional pressure, momentum decay, and price acceptance on the four hour chart. It is built specifically for GBPUSD and EURUSD and is not intended for use on other markets or timeframes.

It highlights conditions where directional pressure weakens, rotates, and is then confirmed by price behavior.

Intended Use and Scope

• Timeframe: 4 hour only
• Markets: GBPUSD and EURUSD
• Style: Swing bias and rotation analysis
• Signal frequency: Intentionally low, typically 10 to 15 setups per year per pair
• Alerts: Available for confirmed setups
• Not designed for Asia session conditions

Core Framework

The script operates through a sequential three-stage process. A setup can only appear when all stages align.

Directional pressure evaluation

Momentum exhaustion and rotation

Candle-based price confirmation

This structure prevents signals from appearing during noise or low-quality market conditions.

Directional Pressure Evaluation

The first stage measures directional pressure across multiple four hour candles using a smoothed strength calculation. This step evaluates whether bullish or bearish participation is dominant over time rather than reacting to isolated price spikes.

When directional pressure is unclear or neutral, the script remains inactive.

Momentum Exhaustion and Rotation

Once directional pressure is established, the script monitors for loss of momentum. Exhaustion is identified when pressure fails to expand despite continued price movement.

This decay often appears near the later stages of a directional move and signals increased probability of rotation rather than continuation.

Price Acceptance and Confirmation

The final stage requires price to confirm the rotation through candle behavior. No intrabar logic is used.

• Buy confirmation requires either
– a bullish candle close following downside pressure exhaustion
– or a pinbar showing strong rejection of lower prices

• Sell confirmation requires either
– a bearish candle close following upside pressure exhaustion
– or a pinbar showing strong rejection of higher prices

A setup is only confirmed after the four hour candle has fully closed.

Stop and Target Reference Plotting

When a setup is confirmed, the script plots visual reference levels:

• A stop reference beyond the exhaustion zone where the setup would be invalidated
• A projected target reference calculated using a fixed 4R multiple relative to the stop distance

These levels are provided for structural planning and consistency. They do not represent predictions or guarantees.

Why the Four Hour Chart Is Required

The pressure and exhaustion calculations are tuned to higher-timeframe behavior. On lower timeframes, momentum cycles occur too rapidly and lead to frequent false rotations.

The four hour chart provides the balance required for meaningful pressure, decay, and acceptance to develop.

Session Considerations

The script is not intended for Asia session evaluation. Reduced liquidity during those hours can distort momentum behavior and reduce signal quality. Best evaluation occurs during or after London and New York participation.

Chart Presentation Guidelines

• Use the script on a clean chart
• Avoid stacking other oscillators or momentum tools
• If drawings are used, they should be limited to swing structure or key price levels

All visual elements should support understanding of the script output.

Important Notes

This script analyzes historical price behavior to identify structural swing conditions. It does not predict future price movement or ensure outcomes. Users should test the tool, understand its confirmation rules, and apply independent risk management.