Discussing the article: "Developing Swing Extremes and the Pullback Indicator: Anticipating Reversals with LTF Market Structure"

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Built on lower-timeframe market structure, and then orchestrated on the higher-timeframe, this indicator detects swing extremes where price becomes statistically vulnerable to reversal. It visualizes overextension and pullback zones, offering early insight into mean-reversion behavior.

Swing Extremes and Pullbacks: Price reversals tend to emerge after clear overextension beyond recent lower-timeframe structure. In both cases, the indicator first identifies the most recent LTF swing high and swing low, which together define a short-term structural range. This range represents “fair” price behavior on the lower timeframe—where price has previously accepted value and rotated normally.

In the extreme bearish move, price aggressively pushes below the LTF's last low, expanding far beyond the recent structure. This breakdown is not treated as a continuation signal, but rather as evidence of exhaustion. When price trades significantly below both the last swing low and the broader LTF structure zone, the indicator flags conditions where selling pressure is statistically stretched, increasing the probability of a bullish pullback or mean reversion toward the prior structure.

Author: Hlomohang John Borotho