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
Outer Channel -> Overbought/Oversold Zone which may signal consolidation phase or potential reversal due to unsustainable move
Details on some of the filtering type used for mean calculation can be read in Technical Papers: "Swiss Army Knife Indicator" and/or his book "Cybernetics Analysis for Stock and Futures"
These study scripts was built only to test/visualize an idea to see its viability and if it can be used to optimize existing strategy.
Any ideas to further improve this indicator are welcome :)
1. Added Format Inherit
2. Added line extension with labels
1. label position use bar_index instead of bar_time (bar_time doesn't work as expected approaching week end/week open)
- Added option to disable line extension and labels
- updated disclaimer in source code
- cleaning code
Notes: Screener for this indicator now available here.
█ New Features
1) Multiple Timeframe Analysis
- The script will scan up to 2 higher timeframes (HTF) for its status/condition
- User able to select HTF type (Auto or Custom)
- For Auto HTF, the script will automatically recommend HTF to be scanned
- For Custom HTF, the script will scan the user defined HTF based on the user input screen
- The MTF will also calculate the distance of last traded price from each TF's Mean, displayed as % of last traded price.
2) Display Mode
- Now user able to display/hide the channel
- HTF Status Label available in 2 display mode (Always Display / On Hover)
- For Always Display Mode, the HTF will always be displayed
- For On Hover Mode, the HTF will be displayed only when mouse hovered above the Check MTF label
- Notes: The script will override and always disabled the Line Extension if HTF is enabled and the mode is always displayed
On Hover Mode without Line Extension
Always Display Mode
█ Features Removed
1) Price label removed since TV's built-in price label offered better/cleaner label (To enable it, go to Setting > Chart Setting > Scales > Indicator Name Label)
Thanks to @combotrading for his feedback/idea on HTF
Although i might be able to come up with something close to that, maybe next week :)
Thanks for your input and Happy New Year!
For crypto, im not trading crypto so i didnt test extensively on it, but i’ll make sure to look into it
As for weekly/monthly stock chart, its a known issue but i initially dont put too much emphasis on it because I rarely use such high timeframe, and the issue mostly because by default im using 200 bar data and many stocks dont have that long history data. Im already working on some handling for that, meantime, as a workaround, u can try change the setting to use 100 bar ema and see if its working out for u.
Thanks again and let me know if you encounter any other problem :)
p/s: i've updated the script to add some options for customization so be sure to update your chart accordingly :) I also published a screener version for this indicator (link in description) if you are interested.