ultimate reversal setup indicator for TradingView
every morning, traders do the same routine: mark yesterday's high, mark yesterday's close, plot the midnight open, then try to figure out if all three levels are aligned for a reversal trade.
it's manual, it's time-consuming, and it's easy to miss the setup when you're juggling three different reports.
the ultimate reversal setup indicator eliminates all of that.
it automatically plots all three key reversal levels on your TradingView chart in different colors. when price opens above all three (or below all three), you instantly see the setup—and you have roughly 70% probability of a reversal back to those levels.
in this article, you'll learn what the ultimate reversal setup indicator is, how it works, which three reports it combines, and how to use it for A+ reversal trades with data-backed targets.
table of contents
- what is the ultimate reversal setup indicator?
- the three reports behind the ultimate reversal setup
- how the ultimate reversal setup indicator works on TradingView
- real trading example: NQ reversal setup
- when the ultimate reversal setup is NOT in play
- filtering by weekday for higher probability
- customizing the ultimate reversal setup indicator
- does the ultimate reversal setup indicator work for stocks?
- frequently asked questions
- key takeaways
what is the ultimate reversal setup indicator?
the ultimate reversal setup indicator is a TradingView tool that automatically plots three critical reversal levels on your chart every session.
here are the three lines it plots:
- red line: previous day's high (from the outside days report)
- blue line: previous day's close (from the gap fill report)
- yellow line: midnight open, or customizable time like 6am (from the ICT opening retracement report)
when price opens above all three lines, you have a bearish reversal setup. when price opens below all three lines, you have a bullish reversal setup.
why this matters
each of these three levels represents a separate high-probability reversal strategy:
- outside days: ~70% reversal rate on NQ
- gap fill: ~60% fill rate on NQ
- ICT opening retracement: 65-74% retracement rate on NQ (depending on time selected)
when all three align in the same direction, you're stacking probabilities. instead of just one 70% setup, you have three independent reports all confirming the same bias.
that's what makes it an "A+" reversal setup instead of a "C" setup.
no more manual plotting
without the ultimate reversal setup indicator, you'd need to:
- mark yesterday's high from the outside days report
- mark yesterday's close from the gap fill report
- mark the midnight open from the ICT opening retracement report
- visually check if all three are aligned above or below price
with the indicator, all three lines are plotted automatically at the start of the session. you just look at the chart and instantly see if the setup is in play.
the three reports behind the ultimate reversal setup
the ultimate reversal setup indicator combines three separate edgeful reports into one visual tool. here's what each report measures:
outside days report (red line)
the outside days report tracks when price opens outside of yesterday's range.
- bullish outside day: price opens above yesterday's high
on NQ, when this happens, there's a 75% probability price reverses back down to touch yesterday's high during the session.
- bearish outside day: price opens below yesterday's low
on NQ, there's a 64% probability price reverses back up to touch yesterday's low during the session when it opens below the prior day's range.
gap fill report (blue line)
the gap fill report tracks when price opens away from yesterday's close.
- gap up: price opens above yesterday's close
on NQ, gaps fill back to yesterday's close roughly 60% of the time during the same session.
- gap down: price opens below yesterday's close
56% probability for the fill rate back up to yesterday's close.
this is your second layer of confluence. if price opens above the yellow line (yesterday's close), you have another data-backed target for the reversal.
ICT opening retracement report (yellow line)
the ICT opening retracement report tracks when price opens away from the midnight open (or a customizable time like 6am).
- opens above midnight open: 72% probability price retraces back down
- opens below midnight open: 58% probability price retraces back up
on the indicator and in the report itself, you can customize the time to by any time you want.
this is your third layer of confluence.
when all three align = A+ setup
when price opens above the red line AND the yellow line AND the blue line, you have three separate reports all saying the same thing: expect a reversal back down.
that's the ultimate reversal setup.
how the ultimate reversal setup indicator works on TradingView
the ultimate reversal setup indicator plots all three lines automatically at the start of the NY session.
step 1: indicator plots the three key levels
at 9:05am (before the NY session opens), the ultimate reversal setup indicator has already marked:
- red line: yesterday's NY session high
- blue line: yesterday's NY session close
- yellow line: midnight open (default) or custom time like 6am
you don't have to do anything. the levels are there waiting for you.
step 2: check where price opens relative to all three
at 9:30am when the NY session opens, you instantly see if the setup is in play.
- scenario 1: bullish outside day + gap up + opens above midnight open
all three lines are below price. this is a bearish reversal setup.
targets: red line (yesterday's high), yellow line (yesterday's close), blue line (midnight/6am open)
probability: roughly 70% that price reverses back down to touch these levels.
- scenario 2: bearish outside day + gap down + opens below midnight open
all three lines are above price. this is a bullish reversal setup.
targets: red line (yesterday's low), yellow line (yesterday's close), blue line (midnight/6am open)
probability: roughly 70% that price reverses back up to touch these levels.
step 3: when the setup is NOT in play
this is critical: the setup only works when all three lines are on the same side of price.
- if price opens between the levels, the setup is out of play.
example: price opens above yesterday's high (red) but below the midnight open (blue). you have mixed signals—one report says reversal down, another says continuation up.
the ultimate reversal setup indicator makes this obvious visually. when the lines are scattered around price at the open, don't force the trade. wait for the next day when all three align.
why this trade works
without the ultimate reversal setup indicator, you might see the gap up and think "continuation to the upside."
with the indicator, you see three colored lines all below price at the open and you immediately know: this is a reversal setup, not a continuation setup.
that visual clarity prevents you from chasing the wrong direction.
the visual clarity
this is where the ultimate reversal setup indicator saves you from forcing trades.
when you see price opening between the colored lines, you know immediately: skip this day. wait for tomorrow when all three lines are cleanly above or below price.
the indicator doesn't just show you when to trade—it shows you when not to trade.
customizing the ultimate reversal setup indicator
the ultimate reversal setup indicator is fully customizable on TradingView.
change line colors
default colors:
- red: previous day's high
- blue: previous day's close
- yellow: midnight/custom open
if these colors don't work with your chart theme, change them to whatever you want. the important thing is visual clarity—you need to instantly see if all three lines are above or below price.
adjust the ICT time (yellow line)
this is the most important customization.
change the blue line from midnight to 3am, 5am, 6am, or any time you want.
different times show different retracement probabilities.
test different times to see which gives you the best results on your ticker. some traders prefer 6am because it shows higher probabilities. others stick with midnight for simplicity.
toggle session selection
the ultimate reversal setup indicator requires the Market Sessions indicator for accurate session tracking.
make sure you're only showing the NY session (9:30am-4:00pm ET) to avoid chart clutter.
turn off London and Asian sessions if you're not trading those hours. you only want to see the relevant session for your setup.
does the ultimate reversal setup indicator work for stocks?
the ultimate reversal setup indicator works best on futures, forex, and crypto because these markets have:
- 24-hour trading (midnight open is meaningful)
- clear session structure
- continuous price action overnight
for stocks
stocks close at 4:00pm and don't reopen until 9:30am the next day. there's no meaningful "midnight open" because stocks aren't trading at midnight.
if you trade stocks, focus on the red line (outside days) and yellow line (gap fill). these two reports still work on stocks.
the blue line (ICT opening retracement) is less relevant because there's no continuous overnight trading to create the midnight reference point.
you can still use two-report confluence (outside days + gap fill) for stocks. it's just not the full three-report "ultimate" setup.
frequently asked questions
what is the ultimate reversal setup indicator?
the ultimate reversal setup indicator automatically plots three key reversal levels on TradingView: previous day's high (red line), previous day's close (yellow line), and midnight open (blue line). when price opens above all three or below all three, you have a 70% probability reversal setup on NQ with data-backed targets at each of the three levels.
how do I add the ultimate reversal setup indicator to TradingView?
log into edgeful, connect your TradingView account, and the ultimate reversal setup indicator will appear in your "invite only" section. you'll also need the Market Sessions indicator for session tracking. add both to your chart and customize the session range to NY (9:30am-4:00pm ET).
what's the difference between the three lines on the ultimate reversal setup indicator?
red line = previous day's high (outside days report). blue line = previous day's close (gap fill report). yellow line = midnight open or custom time (ICT opening retracement report). when all three align above or below price at the open, it's an A+ reversal setup with stacked probabilities.
how often does the ultimate reversal setup work?
when all three reports align on NQ, you have roughly 70% probability of hitting all three reversal targets during the session. individual reports range from 60-74%, but stacking all three increases confidence significantly. always check by weekday subreports for refined probabilities—Tuesdays behave differently than Mondays.
can I change the midnight open time on the ultimate reversal setup indicator?
yes. the yellow line defaults to midnight (00:00) but you can customize it to 3am, 5am, 6am, or any time. different times show different retracement probabilities on NQ.
key takeaways
- the ultimate reversal setup indicator plots three key levels automatically: previous day high (red), previous day close (blue), midnight open (yellow)
- when price opens above all three = bearish reversal bias
- when price opens below all three = bullish reversal bias
- setup is NOT in play if price opens between the levels
- combines outside days report (70%), gap fill report (60%), and ICT opening retracement (65-74%)
- stacking all three reports increases confidence dramatically compared to single-report setups
- target all three lines as price reverses back—hold runners for A+ setups
- works best on futures, forex, crypto (24-hour markets with meaningful midnight opens)
- for stocks, focus on red and yellow lines only (midnight open less relevant without 24-hour trading)
- visual clarity prevents forcing trades when setup isn't aligned
p.s. want access to the ultimate reversal setup indicator and all our other custom TradingView indicators? get started with edgeful here
