SMA Imbalance Oscillator

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 news events.
Release Notes: Added one additional line of code that will keep the oscillator centered at all times.
Release Notes: Fixed an issue with the average look-back formula.
Release Notes: Fixed an issue with the average look-back formula.
Release Notes: More efficient coding for averaging function.
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Want to use this script on a chart?


Can you explain the colour coding of the histogram as well as the direction of why the host is below or above
Anyone using this script in metatrader 5?

Your indicator is very interesting as I also trade mean reversion and to ask if perhaps know if there might be something similar in SierraCharts indicators? Of if it could be possible to construct such an indicator with the study indicators provided in SierraCharts?

Thank you

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