Deviation Bands

Electrified Updated   
This indicator plots the 1, 2 and 3 standard deviations from the mean as bands of color (hot and cold). Useful in identifying likely points of mean reversion.
Default mean is WMA 200 but can be SMA, EMA, VWMA, and VAWMA.
Calculating the standard deviation is done by first cleaning the data of outliers (configurable).
Release Notes:
Adds the option to use the selected source as the mean value. This allows for any indicator to become the mean but forces the deviation calculation to use HLC3.
Release Notes:
Fixed inverse sign flaw. Added comments.
Release Notes:
Improved order of plotting to make it more obvious which values are shown on the indicator and makes it easier to specify alert levels.
Release Notes:
Added color gradient option.
Release Notes:
Converted bias to a configurable feature instead of always including it. Probably not useful for most cases.
Release Notes:
Fixed color scheme to use subtle gradients by default but maintained edges where it made more sense.
This also makes color customization much easier.
Release Notes:
Much improved flexibility to specify minutes or days instead of just bars for any length in the calculation.
Configuration screen is more streamlined.
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.


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