5 Layer Script P4 Potential Reversals Package

This script is a context based potential reversal framework designed to highlight areas where directional risk may shift, not to predict exact tops or bottoms.

The script focuses on identifying exhaustion, failed continuation, and structural hesitation after price has completed an expansion or interacted with key higher-timeframe levels. It is intended to alert traders to possible inflection zones, where confirmation should be actively monitored.

How it works

-Detects conditions associated with loss of momentum or displacement failure
-Highlights potential reversal zones only after price interaction occurs
-Requires context and confirmation — no blind reversal signals
-No repainting once a zone or marker is confirmed


How to use it





-Use as an early warning tool, not an entry system
-Best applied after: Liquidity runs, Range extremes and Higher timeframe midpoint or boundary interaction

Look for confirmation such as:
-Market structure shifts
-Reaction at FVGs
-Signal Package confirmation

Entries should be executed on lower timeframes with risk defined but can be utilized on bigger timeframes as a swing if confirmed

Best practices

-Counter-trend setups require strong higher-timeframe confluence
-Not every highlighted zone will result in a reversal
-Works best during active sessions when liquidity is present
-Avoid using during low-volume or compressed ranges

This package is intentionally non-predictive and confirmation-dependent, designed to keep traders aligned with risk awareness rather than anticipation. However some signals can be treated as entries if "YOUVE IDENTIFIED THE RISK"- Mark Douglas