Reward-Risk Visual Zones (RRZ)

Reward–Risk Visual Zones (RRZ) – Structure-Driven Risk Mapping Engine

Most indicators tell you when to trade.
RRZ is designed to answer a different question:

“Is this setup worth the risk before I take the trade?”

RRZ is not a mashup of unrelated indicators.
It is a 3-stage risk engine that builds a complete trade “story” around each swing:
1. Market structure pivot → defines the trade idea
2. ATR volatility unit → defines the risk size
3. Projected reward → compares reward vs that risk and filters bad setups

The output is a visual trade map: entry, target, stop, and R:R, printed directly on chart at each qualified swing.

1. Market Structure Layer – Where trades are anchored

RRZ doesn’t fire signals from MA/RSI crossovers.
It begins with swing structure:
• Uses ta.pivotlow() and ta.pivothigh() with user-controlled left/right sensitivity:
• Pivot Sensitivity (L) controls how wide a swing must be to qualify as a structural pivot.
• Pivot Confirmation (R) controls how fast/slow a pivot is confirmed (1 = almost real-time, larger values = safer but later).
• A confirmed swing low becomes the candidate anchor for a long R:R zone.
• A confirmed swing high becomes the candidate anchor for a short R:R zone.

Each pivot is stored with its exact price and bar index, so the rest of the logic is always anchored to a real swing instead of a random candle.

2. Volatility Layer – Turning ATR into a “risk unit”

Once a pivot is confirmed, RRZ measures local volatility using ATR:
• ATR length is configurable via ATR Length.
• ATR is not used as a trailing stop or overlay.
In RRZ it plays one specific role:
“One ATR = one unit of structural risk from this swing.”

From that:
Long scenario:
• Entry = pivot low
• Stop = Entry − 1 × ATR
Short scenario:
• Entry = pivot high
• Stop = Entry + 1 × ATR

This standardizes risk across different volatility regimes:
a 2R move in a quiet market and a 2R move in a volatile market are both “2 × ATR” from the structure.

3. Reward Projection Layer – Evaluating if the trade is worth it

RRZ then estimates how far price can realistically travel away from the pivot, given recent behaviour:

For longs (from swing low):
• Projects reward using the highest high in a rolling lookahead window (e.g., last 20 bars).
• Reward = HighestHigh – PivotLow
• Risk = ATR
• R:R = Reward / ATR

For shorts (from swing high):
• Projects reward using the lowest low in the window.
• Reward = PivotHigh – LowestLow
• Risk = ATR
• R:R = Reward / ATR

The user can set a minimum R:R filter via Min R:R Threshold.
• If R:R ≥ threshold → zone is tagged as “GOOD R:R” and highlighted in green (long) or red (short).
• If R:R < threshold → optionally still shown as “LOW R:R” in orange (so you can visually see “tempting but not worth it” trades).

This transforms a raw pivot + ATR into a quantified decision:

“From this swing, volatility says my stop is 1× ATR. Do I even have 2× ATR of room in my favour?”

4. Execution Map – How components work together on chart

Instead of just printing numbers, RRZ builds a full execution template for every qualifying swing:
• Entry line at the pivot price
• Target line at the reward projection price
• Stop line at pivot ± ATR
• A structured label including:
• LONG / SHORT direction
• “GOOD R:R” or “LOW R:R”
• Numerical R:R (e.g., 2.3 : 1)
• Entry, Target, Stop, current Close

A Cooldown Bars parameter prevents overlapping spam:
• After an R:R zone is created (long or short), the script waits X bars before considering another zone in the same direction.
• This keeps charts readable and focuses attention on the most recent high-quality swings.

RRZ also includes line style controls (solid/dashed/dotted) and separate colours for entry, target, and stop, so traders can quickly read the chart even without opening settings.

5. How to Use RRZ in a Trading Plan

RRZ is not a magic “buy/sell” button.
It is designed to sit on top of your existing strategy as a risk filter.

Typical workflows:
SMC / price-action traders:
• Use your own logic for BOS/CHoCH, order blocks, or liquidity sweeps.
• Use RRZ only where structure aligns and the zone shows GOOD R:R ≥ 2.0.
• Avoid setups where RRZ marks LOW R:R even if the pattern looks good.
System traders / swing traders:
• Use RRZ to standardize risk across assets and timeframes.
• Filter out trades where potential reward does not justify the stop, based on current ATR.
Beginners:
• Learn to stop taking trades where the target is too close and the stop is too wide.
• Visually understand how structural swings and volatility interact.

RRZ works across Forex, Crypto, Indices, and Stocks on intraday and higher timeframes.
Once a pivot is confirmed and a zone is plotted, its lines and labels do not repaint.

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6. Why this invite-only script is more than a basic mashup

RRZ does use classic building blocks (pivots, ATR), but the value is in the way they are stitched into a single risk framework:
• It doesn’t run multiple separate indicators on chart.
Everything is computed inside one engine with a single purpose: structure-based R:R evaluation.
• ATR is not just “slapped on” as a stop line; it is treated as the core risk unit in the R:R calculation pipeline.
• Every zone is a coherent trade idea: from swing, to risk unit, to projected reward, to filtered label, to execution lines.
• The script is designed specifically to help traders do the one thing that almost no free indicator prioritizes:
“Say NO to low R:R trades automatically.”

This is what distinguishes RRZ from generic ATR-stop scripts or simple pivot overlays.

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Important
• No performance promises.
• No marketing claims (“guaranteed”, “high win rate”, etc.).
• Purely a risk mapping & visualization tool.