Alt Trading

Tom's Reversal Strategy (Free TradingView Indicator)

A free TradingView indicator that detects regime transitions and BOS reversals so you can identify high-probability reversal setups with automated risk/reward visualization.

  • •Calculates hourly directional bias using higher-timeframe OHLC data
  • •Confirms BOS (Break-of-Structure) events with strict/non-strict validation
  • •Highlights "blue windows" for refined entry timing + real-time risk/reward boxes

Who it's for:

  • ✓Intraday futures traders who want regime context + structure-based reversals
  • ✓Scalpers and algorithmic traders who need precise timing filters

Not ideal for:

  • ✗Swing traders who hold positions overnight (this is intraday-focused)
  • ✗Traders who want trend-following signals (this identifies reversals)
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Tom's Reversal Strategy showing hourly bias, BOS detection, and blue window timing

What you get on the chart

  • •Hourly bias background: Dynamic shading (bullish/bearish) based on higher-timeframe OHLC data
  • •BOS labels: Permanent structural break confirmations (strict or non-strict validation)
  • •Blue windows: Intra-hour continuation windows that highlight refined entry timing
  • •Risk/reward boxes: Real-time TP/SL visualization that updates tick-by-tick until completion
  • •Pivot-based stops: Automatic stop placement derived from swing structure
  • •Long/short signals: Generated only within valid continuation conditions (not random reversals)

How to use it

Best timeframes

Works best on 5m and 15m charts for intraday reversal setups. The hourly bias calculation requires at least 1h data to function properly.

Best markets

Optimized for ES, NQ, CL, GC, and YM futures. Works best during liquid NY session hours (9:30 AM - 4:00 PM ET).

Default workflow

  1. Wait for hourly bias to establish (bullish or bearish background shading)
  2. Watch for BOS confirmation inside a continuation window (blue window appears)
  3. Enter on reversal signal when price respects pivot structure
  4. Use risk/reward box to manage position (updates in real time)
  5. Stay flat when bias is neutral or conflicting (no clear regime)

Common mistakes

  • Entering before BOS confirmation (wait for structure break, not just a pullback)
  • Ignoring the blue window filter (if no window, the timing isn't right)
  • Trading against the hourly bias (fading the trend instead of trading reversals within it)
  • Not waiting for pivot-based stop confirmation (entering too early)

Settings guide

BOS confirmation mode

Strict requires price close beyond swing point. Non-strict allows wicks. Strict = fewer false signals, non-strict = earlier entries. Default: Strict.

Blue window sensitivity

Controls how aggressively continuation windows are identified. Higher = more windows, lower = only major continuation periods. Default: Medium.

Pivot stop distance

How far beyond pivot structure the stop is placed. Tighter = more risk, wider = more room for volatility. Default: 2-3 ticks.

Risk/reward ratio

Fixed R:R target for TP placement. 1:2 = conservative, 1:3+ = aggressive. Default: 1:2.5.

Bias calculation timeframe

Higher timeframe used for hourly bias. 1h = standard, 4h = stronger bias but fewer signals. Default: 1h.

Examples

Example: BOS reversal in blue window

Example showing BOS reversal signal within blue window continuation period

Hourly bias shows bullish (green background). Price breaks structure (BOS confirmed), then retraces into blue window. Reversal signal triggers with pivot-based stop. Risk/reward box shows 1:2.5 ratio.

Example: Regime transition detection

Example showing hourly bias transition from bullish to bearish regime

Background shifts from bullish (green) to bearish (red) as higher-timeframe structure changes. BOS confirms the transition. No signals until new regime stabilizes—indicator correctly identifies "stay flat" period.

Limitations / what it's NOT

When it works: Clear regime transitions, during liquid NY session hours, when BOS confirms inside continuation windows, when hourly bias is strong (not neutral).

When it fails: Choppy/range-bound markets without clear structure, during low liquidity (overnight), when hourly bias is neutral/conflicting, during news events that break structure.

What it doesn't claim: No "guaranteed reversals" or "100% win rate." This identifies high-probability setups—you still need risk management and discipline. It doesn't execute trades automatically.

Repainting: Hourly bias and BOS detection use non-repainting logic (once confirmed, they stay fixed). Risk/reward boxes update in real time as price moves—this is intentional for live trade management.

Why we built this

Most reversal indicators either show too many false signals (every pullback) or miss the timing entirely. Tom's Reversal Strategy solves this by requiring three confirmations: hourly bias (regime context), BOS (structure break), and blue window (timing filter).

The pivot-based stop placement and real-time risk/reward visualization eliminate guesswork—you know exactly where you're wrong and where you're taking profit before you enter.

Best paired with: Regime Detection (for trend context) or TX Price Action (for structure mapping).

Version History

v1.2 (Dec 4, 2025)

Added blue window timing filter, improved pivot stop logic, enhanced risk/reward box visualization.

v1.1 (Nov 15, 2025)

Initial release with hourly bias calculation, BOS detection, and automated risk/reward boxes.

FAQ

What makes Tom's Reversal Strategy different from other reversal indicators?

It combines hourly regime detection with pivot-based BOS confirmation and "blue window" timing filters to identify high-probability reversal setups. The automated risk/reward visualization updates in real time until trade completion.

How can I use this indicator with my trading strategy?

Wait for hourly bias to establish, then look for BOS confirmation inside a blue window. Enter on reversal signal when price respects pivot structure. Use the risk/reward box to manage your position—it updates in real time.

Does the indicator repaint?

Hourly bias and BOS detection use non-repainting logic—once confirmed, they stay fixed. Risk/reward boxes update in real time as price moves (this is intentional for live trade management).

How can I access Tom's Reversal Strategy?

You can get access to the Tom's Reversal Strategy indicator directly from the Alt Trading Library, available for TradingView, completely free. Claim free access here.

What markets and timeframes work best?

Optimized for ES, NQ, CL, GC, and YM futures. Works best on 5m and 15m charts during liquid NY session hours (9:30 AM - 4:00 PM ET). Requires at least 1h data for hourly bias calculation.

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