Custom Reversal Oscillator [wjdtks255]

📊 Indicator Overview: Custom Reversal Oscillator
This indicator is a momentum-based oscillator designed to identify potential trend reversals by analyzing price velocity and relative strength. It visualizes market exhaustion and recovery through a dynamic histogram and signal dots, similar to premium institutional tools.

Key Components
Dynamic Histogram (Bottom Bars): Changes color based on momentum strength. Bright Green/Red indicates accelerating momentum, while Darker shades suggest fading strength.

Signal Line: A white line tracing the core momentum, helping to visualize the "wave" of the market.

Buy/Sell Dots: Small circles at the bottom (Mint) or top (Red) that signal high-probability reversal points when the market is overextended.

📈 Trading Strategy (How to Trade)
1. Long Entry (Buy Signal)
Condition 1: The price should ideally be near or above the 200 EMA (for trend following) or showing a Bullish Divergence.

Condition 2: The Histogram bars transition from Dark Red to Bright Green.

Condition 3: A Mint Buy Dot appears at the bottom of the oscillator (near the -25 level).

Entry: Enter on the close of the candle where the Buy Dot is confirmed.

2. Short Entry (Sell Signal)
Condition 1: The price is struggling at resistance or showing a Bearish Divergence.

Condition 2: The Histogram bars transition from Dark Green to Bright Red.

Condition 3: A Red Sell Dot appears at the top of the oscillator (near the +25 level).

Entry: Enter on the close of the candle where the Sell Dot is confirmed.

3. Exit & Take Profit
Take Profit: Close the position when the Signal Line reaches the opposite extreme or when the histogram color starts to fade (loses its brightness).

Stop Loss: Place your stop loss slightly below the recent swing low (for Longs) or above the recent swing high (for Shorts).

💡 Pro Tips for Accuracy
Watch for Divergences: The most powerful signals occur when the price makes a lower low, but the Custom Reversal Oscillator makes a higher low. This indicates "Hidden Strength" and a massive reversal is often imminent.