Buy Sell Bands is a super simple indicator based on the mean reversion (range trading) strategy that shows you exactly where to buy, sell and close trades on every chart, market and timeframe. It's best used together with our Range Strength indicator to identify when the market is in a range mode, this is the best time to take the entry signals from the Buy...
Count of previous bars above or below a chosen Exponential Moving Average. Typically price reconnects with well defined EMAs regularly. If the price has been above/below an EMA for too long, you can expect a reconnect in a short order and bet on mean reversion strategies.
The other way to build bands around price that uses Mean Absolute Deviation instead of Standard Deviation. MAD is also a measure of variability, but less frequently used. MAD is better for use with distributions other than the Gaussian. MAD is always less than or equal to Standard Deviation and the resulting bands are more tighter for the same parameters if we...
This indicator aims to aid in using the regular London Breakout strategy, as well as improve on it by adding a trailing stop based on the Mean Deviation Index. The London Breakout strategy (according to my personal understanding) basically sees the morning before London open as the accumulation or distribution range for large buyers or sellers, and assumes the...
The Mean Deviation Index (MDX) is used to see how much price is deviating from the mean. This indicator takes both volatility and mean deviation in consideration. It uses the standard deviation of the ATR to filter an EMA, and uses this as the mean. It then only plots > or < 0 if price is more than one x ATR away from the mean. If index is positive, the...
Simple arithmetic mean with source, style and width settings.
script for mean reversion conditions - tweak-able based on the volatility of the asset its used on, and the time frame
This is a continuation of my series on forecasting techniques. The idea behind the Simple Mean method is to somehow extend historical mean to the future. In this case a forecast equals to last value plus average change.
This is a mean reversion indicator that anticipates a local trend reversion. Basically, it is a channel with the mid-line serving as a moving mean baseline. Each of the two curves run up and down within this channel bouncing off from the top and bottom bounds. Touching the bounds serves as an indication of a local trend reversal. The reversal signal is stronger...
The Return to the Mean Oscillator shows the spread between the selected mean study and the actual close in price. In this first version, I'm including the All-Time Historical Mean, which is the evolution of the mean value of that asset since its inception. By using this indicator we are able to see if a particular market is trading above/below historical mean...
The Return to the Mean plots reference values that price action tends to revisit each cycle. In this first version, I'm including the All-Time Historical Mean, which is the evolution of the mean value of that asset since its inception. By using this indicator we are able to see if a particular market is trading above/below historical mean value. Moreover, we can...
This script is meant to calculate the Escape Velocity from the mean. According to Investopedia "Mean reversion is theory used in finance that suggests that asset prices and historical returns eventually return back to the long-run mean or average level of the entire data set." Escape Velocity is the lowest velocity which a body must have in order to escape the...
English: This script shows the price development over the last year (default: green) and mean prices over the last three (default: light green), six (default: orange) and nine (default: red) years and is therefore at least some kind of approach towards true seasonality. Thanks to user "apozdnyakov" for providing most of the code! Deutsch: Dieses Skript zeigt...
The Mean Oscillator shows the spread between the historical mean and the actual close price. By using this indicator we are able to see if a particular market is trading above/below historical mean value. The Mean value equals zero in the oscillator scale. Therefore, we can use this indicator to clearly identify 'Return to the Mean' moves. Note: Tradingview...
The Mean Machine plots the evolution of the mean value of that asset since its inception. By using this indicator we are able to see if a particular market is trading above/below historical mean value. Moreover, we can use this indicator to anticipate powerful 'Return to the Mean' moves. Note: Tradingview limits the number of candles we can use on each time...
Hello traders and developers! I was wondering how built-in "dev" function in Pine is calculated so I made a little research. I examined 7 samples: 0) "dev" function itself 1) "dev" according to its description: series - sma(series) 2) Mean Absolute Deviation 3) ratio of the absolute difference from 1) divided by period 4) ratio of the difference from 1)...
Mean Reversion and Momentum Interpretation: - Divergence means trend reversal - Parallel movement means trend continuation Squares above serve as a confirming signal
Mean Reversion and Momentum Interpretation: - Divergence means trend reversal - Parallel movement means trend continuation Squares above serve as a confirming signal