TBRSV - Trend Bias & Reversal Signals with Volatility Squeezes

The "TBRSV" indicator is designed to identify the prevailing trend direction, potential reversal points, and squeeze breakouts. It achieves this by combining several technical analysis tools:

EMA-Based Trend Bias: It uses a fast and slow Exponential Moving Average (EMA) to determine the overall trend direction. The directionalBias line visually represents this bias, with lime indicating an uptrend, red indicating a downtrend, and orange signalling a potential trend change.

Reversal Confirmation: The indicator identifies potential reversal points by looking for price action that breaks the recent trend. If the price makes a new low during an uptrend or a new high during a downtrend within a specified look back period, it considers this a reversal signal.

Reversal Signals: Confirmed reversals are marked with lime (bullish) or red (bearish) dots on the chart. These dots suggest potential entry or exit points.

Squeeze Detection: The indicator uses Bollinger Bands and Keltner Channels to identify periods of consolidation, or "squeezes," where volatility is low.

Squeeze Breakout Signals: It identifies high-volume breakouts from these squeezes. A white upward-pointing triangle signals a bullish breakout, while a white downward-pointing triangle signals a bearish breakout.

How to Best Use the Indicator

1. Determine the Trend Bias: Use the color of the directionalBias line to quickly assess the current trend.

2. Identify Potential Reversal Zones: Pay attention to the orange areas, which signal times of indecision and potential trend changes.

3. Confirmed Reversal Signals: Look for lime or red dots. These dots indicate high-probability reversal points and potential entry or exit points.

4. Squeeze Breakout Signals: Trade in the direction of the breakout.

5. Combine with Other Indicators: Enhance signals from the "Trend Bias & Reversal Signals" indicator with other tools, such as volume analysis, RSI, MACD, trend lines, or candlestick patterns.

6. Consider Trend Strength: Not all trends are equal. Adjust your trading strategy based on the strength of the trend.

7. Weighted Trade Signals: Consider using the indicator in conjunction with weighted trade signals, giving more weight to signals aligned with the trend bias.

By understanding the components of the "Trend Bias & Reversal Signals with Volume Squeezes" indicator and how they work together, you can use it to identify high-probability trading opportunities and improve your overall trading performance. Remember to adapt your approach to different market conditions and trading styles.