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...
This oscillator is used for *mean reversion* strategies only. This oscillator calculates the real-time distance of a price-point subtracted from the SMA, then compares it to the average distance to determine equilibrium imbalances. When the imbalance becomes less and goes under the signal line, a reversal is very likely. Do not trade mean reversion during any...
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...
The Bollinger Imbalance Oscillator is used for *mean reversion* purposes only. It uses Double Bollinger deviation levels to determine each level of perceived imbalance. When price start to revert to its mean after an imbalance, small char-type arrows appear to assist with direction. This oscillator also includes a squeeze feature on the center-line, based on...
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)...
For private peeps only - Takes a modified version of the CCI formula into 2 parts VCI - Volume Channel Index (Yellow Histogram) - Measures accurate accumulation and distribution levels and times MCI - Modified Channel Index - Measures (when compared to VCI) levels where clearly buys are interested vs not interested. Example: If VCI > MCI - Shows buyer's are...
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
This script works on the principle of short-term mean reversion and long term trend following, and uses minimal parameters to ensure no overfitting. The scripts beats buy and hold for almost all major pairs that satisfy the following conditions: - are trading on multiple exchanges as either ALTBTC or ALTUSD pairs - have good volume available with them - have an...
A basic mean-reversion strategy. Shorts when the close is 10% above the MA, and goes long when it's 10% below the MA.
Price equilibrium study. Can be used for mean reversion.
Invite Only: But everyone will be accepted Invite-only in order to understand demand and interest in this type of strategy. All requests are welcome and will be accepted. Full Source is available A blog post containing full source code and commentary of the strategy is available on the backtest-rookies website. To comply with house rules, I cannot post a...
This TA is called Keltner Channel Width(KCW). It consists of a black line measuring the percentage difference between the upper and the lower channel and a blue line which is the 20-sma of KCW. Based on true range, KCW can be interpreted in two ways: (1) falling width reflects decreasing volatility and (2) rising width reflects increasing volatility. KCW is a...
Here is a nice little script that highlights areas of volume using standard deviation, you can choose the look back periods. This script is based on the excellent script by: @SteynTrade - I have simplified it a bit and made it readable to my taste using alpha to highlight high volume areas. Enjoy.