Uptrick Liquid Reversal Bands for ThinkorSwim

[chewie76]

Uptrick Liquid Reversal Bands for ThinkorSwim was converted from this original source.
https://www.tradingview.com/script/NkOJyPWb-Uptrick-Liquid-Reversal-Bands/

Liquid Reversal Bands is an overlay indicator designed to help traders identify dynamic support and resistance zones, detect mean-reversion opportunities, and read price position within a volatility-aware envelope. Rather than using fixed standard deviation bands around a single moving average, this system builds its band width from multiple volatility components simultaneously, creating a more adaptive and stable envelope that responds to changing market conditions without overreacting to short-term noise. The candle coloring, fair value line, and band fills all carry live visual information, making it possible to assess market state and recent signal context at a glance without needing additional tools on the chart.

#// Uptrick_Liquid_Reversal_Bands
#// Original concept from https://www.tradingview.com/script/NkOJyPWb-Uptrick-Liquid-Reversal-Bands/
#// Converted and modified by Chewie 7/11/2026

declare upper;

#=== Inputs ===
input src              = close;
input fairLen          = 50;
input zLen             = 100;
input smoothLen        = 18;
input upperMult        = 2.4;
input lowerMult        = 2.4;
input outerUpperMult   = 1.45;
input outerLowerMult   = 1.45;
input colorbar         = yes;
input enableSignals    = yes;
input cooldownBars     = 0;
input candleMode       = {default ReversalHeat, LatestSignal};
input showOuterBands   = yes;
input lineSlopeLen         = 5;
input lineSlopeSensitivity = 1.25;

#=== Fixed palette (matches original hex colors) ===
def bullR = 92;   def bullG = 240; def bullB = 215;  
def bearR = 179;  def bearG = 42;  def bearB = 195;  

#=== ALMA (Arnaud Legoux Moving Average) for Fair Value ===
def almaOffset = 0.85;
def almaSigma  = 6.0;
def m = almaOffset * (fairLen - 1);
def s = fairLen / almaSigma;

def wSum = fold wi = 0 to fairLen with ws = 0 do
    ws + Exp(-1 * Power(wi - m, 2) / (2 * Power(s, 2)));

def wPriceSum = fold pi = 0 to fairLen with wps = 0 do
    wps + GetValue(src, fairLen - 1 - pi) * Exp(-1 * Power(pi - m, 2) / (2 * Power(s, 2)));

def almaFair = wPriceSum / wSum;

#=== Liquid Fair Value ===
def emaFair      = ExpAverage(src, fairLen);
def fairRaw       = emaFair * 0.55 + almaFair * 0.45;
def fairSmoothLen = Max(1, Floor(smoothLen / 2.0));
def fair          = ExpAverage(fairRaw, fairSmoothLen);

#=== Liquid Band Width ===
def dev         = src - fair;
def devStdev    = StandardDeviation(dev, zLen);
def atrValue    = WildersAverage(TrueRange(high, close, low), 14);
def absDev      = ExpAverage(AbsValue(dev), zLen);
def rangeEnergy = ExpAverage(high - low, smoothLen);

def baseWidth = devStdev * 0.60 + atrValue * 0.25 + absDev * 0.10 + rangeEnergy * 0.05;
def width     = ExpAverage(baseWidth, smoothLen);

def upperBand1      = fair + width * upperMult;
def lowerBand1      = fair - width * lowerMult;
def outerUpperBand1 = fair + width * upperMult * outerUpperMult;
def outerLowerBand1 = fair - width * lowerMult * outerLowerMult;
def upperbanda      = (upperband1 - fair) /2 + fair;
def lowerbanda      = fair - (upperband1 - fair) /2;

#=== Fair Value Line Slope Coloring ===
def fairSlopeRaw    = fair - fair[1];
def fairSlopeAvg    = ExpAverage(AbsValue(fairSlopeRaw), lineSlopeLen);
def fairSlopeNorm   = if fairSlopeAvg != 0 then fairSlopeRaw / fairSlopeAvg else 0;
def fairSlopeSmooth = ExpAverage(fairSlopeNorm, lineSlopeLen);
def lineRatioRaw    = 0.5 + fairSlopeSmooth / (2 * lineSlopeSensitivity);
def lineRatio       = Min(1, Max(0, lineRatioRaw));

def lineR = bearR + (bullR - bearR) * lineRatio;
def lineG = bearG + (bullG - bearG) * lineRatio;
def lineB = bearB + (bullB - bearB) * lineRatio;

#=== Band / Fair Value Plots ===
plot UpperBand = upperBand1;
plot LowerBand = lowerBand1;
plot UpperBandi = upperBanda;
plot LowerBandi = lowerBanda;
plot FairValue = fair;

UpperBand.SetDefaultColor(Color.LIGHT_GRAY);
LowerBand.SetDefaultColor(Color.LIGHT_GRAY);
UpperBand.SetLineWeight(1);
LowerBand.SetLineWeight(1);
UpperBandi.SetDefaultColor(Color.GRAY);
LowerBandi.SetDefaultColor(Color.GRAY);
FairValue.AssignValueColor(CreateColor(lineR, lineG, lineB));
FairValue.SetLineWeight(4);

plot OuterUpperBand = if showOuterBands then outerUpperBand1 else Double.NaN;
plot OuterLowerBand = if showOuterBands then outerLowerBand1 else Double.NaN;
OuterUpperBand.SetDefaultColor(CreateColor(bearR, bearG, bearB));
OuterLowerBand.SetDefaultColor(CreateColor(bullR, bullG, bullB));

#=== Reversal Signals ===
def rawBuy  = close[1] <= lowerBand1[1] and close > lowerBand1;
def rawSell = close[1] >= upperBand1[1] and close < upperBand1;

# self-referential cooldown counter (bars since last accepted signal)
def barsSinceSignal = CompoundValue(1,
    if enableSignals and (rawBuy or rawSell) and (barsSinceSignal[1] >= cooldownBars)
        then 0
        else barsSinceSignal[1] + 1,
    9999);

def barsOk    = barsSinceSignal[1] >= cooldownBars;
def finalBuy  = enableSignals and rawBuy and barsOk;
def finalSell = enableSignals and rawSell and barsOk;

def lastSignalState = CompoundValue(1,
    if finalBuy then 1 else if finalSell then -1 else lastSignalState[1],
    0);

#=== Candle Coloring ===
def bandRange    = upperBand1 - lowerBand1;
def ratioRaw     = if bandRange != 0 then (src - lowerBand1) / bandRange else 0.5;
def ratioClamped = Min(1, Max(0, if IsNaN(ratioRaw) then 0.5 else ratioRaw));

def heatR = bullR + (bearR - bullR) * ratioClamped;
def heatG = bullG + (bearG - bullG) * ratioClamped;
def heatB = bullB + (bearB - bullB) * ratioClamped;

def candleR = if candleMode == candleMode.LatestSignal
    then (if lastSignalState == 1 then bullR else if lastSignalState == -1 then bearR else heatR)
    else heatR;
def candleG = if candleMode == candleMode.LatestSignal
    then (if lastSignalState == 1 then bullG else if lastSignalState == -1 then bearG else heatG)
    else heatG;
def candleB = if candleMode == candleMode.LatestSignal
    then (if lastSignalState == 1 then bullB else if lastSignalState == -1 then bearB else heatB)
    else heatB;

AssignPriceColor(if colorbar then CreateColor(candleR, candleG, candleB) else color.current);

#=== Fills ===
AddCloud(UpperBand, UpperBandi, CreateColor(129, 20, 135), CreateColor(129, 20, 135));
AddCloud(LowerBandi, LowerBand, CreateColor(70, 180, 155), CreateColor(70, 180, 155));
AddCloud(OuterUpperBand, UpperBand, CreateColor(bearR, bearG, bearB), CreateColor(bearR, bearG, bearB));
AddCloud(LowerBand, OuterLowerBand, CreateColor(bullR, bullG, bullB), CreateColor(bullR, bullG, bullB));

#=== Buy / Sell Signal Arrows ===
plot BuySignal = if finalBuy then low - ATR(60) / 2  else Double.NaN; 
BuySignal.SetPaintingStrategy(PaintingStrategy.ARROW_UP);
BuySignal.SetDefaultColor(color.green);  #CreateColor(bullR, bullG, bullB));
BuySignal.SetLineWeight(2);

plot SellSignal = if finalSell then high + ATR(60) / 2 else Double.NaN;
SellSignal.SetPaintingStrategy(PaintingStrategy.ARROW_DOWN);
SellSignal.SetDefaultColor(color.red); #CreateColor(bearR, bearG, bearB));
SellSignal.SetLineWeight(2);