Uptrick: Fusion Trend Reversion System

Overview
The Uptrick: Fusion Trend Reversion System is a multi-layered indicator designed to identify potential price reversals during intraday movement while keeping traders informed of the dominant short-term trend. It blends a composite fair value model with deviation logic and a refined momentum filter using the Relative Strength Index (RSI). This tool was created with scalpers and short-term traders in mind and is especially effective on lower timeframes such as 1-minute, 5-minute, and 15-minute charts where price dislocations and quick momentum shifts are frequent.

Introduction
This indicator is built around the fusion of two classic concepts in technical trading: identifying trend direction and spotting potential reversion points. These are often handled separately, but this system merges them into one process. It starts by computing a fair value price using five moving averages, each with its own mathematical structure and strengths. These include the exponential moving average (EMA), which gives more weight to recent data; the simple moving average (SMA), which gives equal weight to all periods; the weighted moving average (WMA), which progressively increases weight with recency; the Arnaud Legoux moving average (ALMA), known for smoothing without lag; and the volume-weighted average price (VWAP), which factors in volume at each price level.

All five are averaged into a single value — the raw fusion line. This fusion acts as a dynamically balanced centerline that adapts to price conditions with both smoothing and responsiveness. Two additional exponential moving averages are applied to the raw fusion line. One is slower, giving a stable trend reference, and the other is faster, used to define momentum and cloud behavior. These two lines — the fusion slow and fusion fast — form the backbone of trend and signal logic.

Purpose
This system is meant for traders who want to trade reversals without losing sight of the underlying directional bias. Many reversal indicators fail because they act too early or signal too frequently in choppy markets. This script filters out noise through two conditions: price deviation and RSI confirmation. Reversion trades are considered only when the price moves a significant distance from fair value and RSI suggests a legitimate shift in momentum. That filtering process gives the trader a cleaner, higher-quality signal and reduces false entries.
The indicator also visually supports the trader through colored bars, up/down labels, and a filled cloud between the fast and slow fusion lines. These features make the market context immediately visible: whether the trend is up or down, whether a reversal just occurred, and whether price is currently in a high-risk reversion zone.

Originality and Uniqueness
What makes this script different from most reversal systems is the way it combines layers of logic — not just to detect signals, but to qualify and structure them. Rather than relying on a single MA or a raw RSI level, it uses a five-MA fusion to create a baseline fair value that incorporates speed, stability, and volume-awareness.

On top of that, the system introduces a dual-smoothing mechanism. It doesn’t just smooth price once — it creates two layers: one to follow the general trend and another to track faster deviations. This structure lets the script distinguish between continuation moves and possible turning points more effectively than a single-line or single-metric system.

It also uses RSI in a more refined way. Instead of just checking if RSI is overbought or oversold, the script smooths RSI and requires directional confirmation. Beyond that, it includes signal memory. Once a signal is generated, a new one will not appear unless the RSI becomes even more extreme and curls back again. This memory-based gating reduces signal clutter and prevents repetition, a rare feature in similar scripts.

Why these indicators were merged
Each moving average in the fusion serves a specific role. EMA reacts quickly to recent price changes and is often favored in fast-trading strategies. SMA acts as a long-term filter and smooths erratic behavior. WMA blends responsiveness with smoothing in a more balanced way. ALMA focuses on minimizing lag without losing detail, which is helpful in fast markets. VWAP anchors price to real trade volume, giving a sense of where actual positioning is happening.
By combining all five, the script creates a fair value model that doesn’t lean too heavily on one logic type. This fusion is then smoothed into two separate EMAs: one slower (trend layer), one faster (signal layer). The difference between these forms the basis of the trend cloud, which can be toggled on or off visually.

RSI is then used to confirm whether price is reversing with enough force to warrant a trade. The RSI is calculated over a 14-period window and smoothed with a 7-period EMA. The reason for smoothing RSI is to cut down on noise and avoid reacting to short, insignificant spikes. A signal is only considered if price is stretched away from the trend line and the smoothed RSI is in a reversal state — below 30 and rising for bullish setups, above 70 and falling for bearish ones.

Calculations
The script follows this structure:

• Calculate EMA, SMA, WMA, ALMA, and VWAP using the same base length
  
• Average the five values to form the raw fusion line
  
• Smooth the raw fusion line with an EMA using sens1 to create the fusion slow line
  
• Smooth the raw fusion line with another EMA using sens2 to create the fusion fast line
  
• If fusion slow is rising and price is above it, trend is bullish
  
• If fusion slow is falling and price is below it, trend is bearish
  
• Calculate RSI over 14 periods
  
• Smooth RSI using a 7-period EMA
  
• Determine deviation as the absolute difference between current price and fusion slow
  
• A raw signal is flagged if deviation exceeds the threshold
  
• A raw signal is flagged if RSI EMA is under 30 and rising (bullish setup)
  
• A raw signal is flagged if RSI EMA is over 70 and falling (bearish setup)
  
• A final signal is confirmed for a bullish setup if RSI EMA is lower than the last bullish signal’s RSI
  
• A final signal is confirmed for a bearish setup if RSI EMA is higher than the last bearish signal’s RSI
  
• Reset the bullish RSI memory if RSI EMA rises above 30
  
• Reset the bearish RSI memory if RSI EMA falls below 70
  
• Store last signal direction and use it for optional bar coloring
  
• Draw the trend cloud between fusion fast and fusion slow using fill()
  
• Show signal labels only if showSignals is enabled
  
• Bar and candle colors reflect either trend slope or last signal direction depending on mode selected
  

How it works
Once the script is loaded, it builds a fusion line by averaging five different types of moving averages. That line is smoothed twice into a fast and slow version. These two fusion lines form the structure for identifying trend direction and signal areas.

Trend bias is defined by the slope of the slow line. If the slow line is rising and price is above it, the market is considered bullish. If the slow line is falling and price is below it, it’s considered bearish.

Meanwhile, the script monitors how far price has moved from that slow line. If price is stretched beyond a certain distance (set by the threshold), and RSI confirms that momentum is reversing, a raw reversion signal is created. But the script only allows that signal to show if RSI has moved further into oversold or overbought territory than it did at the last signal. This blocks repetitive, weak entries. The memory is cleared only if RSI exits the zone — above 30 for bullish, below 70 for bearish.

Once a signal is accepted, a label is drawn. If the signal toggle is off, no label will be shown regardless of conditions. Bar colors are controlled separately — you can color them based on trend slope or last signal, depending on your selected mode.

Inputs
You can adjust the following settings:

• MA Length: Sets the period for all moving averages used in the fusion.
  
• Show Reversion Signals: Turns on the plotting of “Up” and “Down” labels when a reversal is confirmed.
  
• Bar Coloring: Enables or disables colored bars based on trend or signal direction.
  
• Show Trend Cloud: Fills the space between the fusion fast and slow lines to reflect trend bias.
  
• Bar Color Mode: Lets you choose whether bars follow trend logic or last signal direction.
  
• Sens 1: Smoothing speed for the slow fusion line — higher values = slower trend.
  
• Sens 2: Smoothing speed for the fast line — lower values = faster signal response.
  
• Deviation Threshold: Minimum distance price must move from fair value to trigger a signal check.
  

Features
This indicator offers:

• A composite fair value model using five moving average types.
  
• Dual smoothing system with user-defined sensitivity.
  
• Slope-based trend definition tied to price position.
  
• Deviation-triggered signal logic filtered by RSI reversal.
  
• RSI memory system that blocks repetitive signals and resets only when RSI exits overbought or oversold zones.
  
• Real-time tracking of the last signal’s direction for optional bar coloring.
  
• Up/Down labels at signal points, visible only when enabled.
  
• Optional trend cloud between fusion layers, visualizing current market bias.
  
• Full user control over smoothing, threshold, color modes, and visibility.
  

Conclusion
The Fusion Trend-Reversion System is a tool for short-term traders looking to fade price extremes without ignoring trend bias. It calculates fair value using five diverse moving averages, smooths this into two dynamic layers, and applies strict reversal logic based on RSI deviation and momentum strength. Signals are triggered only when price is stretched and momentum confirms it with increasingly strong behavior. This combination makes the tool suitable for scalping, intraday entries, and fast market environments where precision matters.

Disclaimer

This indicator is for informational and educational purposes only. It does not constitute financial advice. All trading involves risk, and no tool can predict market behavior with certainty. Use proper risk management and do your own research before making trading decisions.