Description :
Mean Reversion Channel objective, based on Mean Reversion theory ( everything has a tendency to revert back to its mean), is to help visualizing:
Inner Channel -> Dynamic Support and Resistance
Outer Channel -> Overbought/Oversold Zone which may signal consolidation phase or potential reversal due to unsustainable move
Details on some of...
The Launch Pad Indicator, utilizes the tendency of stocks that have dropped below the center-line of a moving average, to snap back to the center-line and then exceed that center-line by approximately the same magnitude as the prior drop. This is referred to as, reversion to mean. You can see clear evidence for mean reversions in all stocks, equities and publicly...