TASC 2026.01 The Reversion Index (RI)This script implements the Reversion Index (RI), an indicator originally presented in Technical Analysis of Stocks & Commodities (TASC) magazine, January 2026 issue.
The Reversion Index is designed to measure directional balance versus total movement, helping identify overextended conditions and potential mean-reversion scenarios. It compares the net directional price change to the sum of absolute price changes over a given period, producing a normalized oscillator.
To improve signal quality, this implementation applies John Ehlers’ Super Smoother filter, reducing noise while preserving responsiveness. A slower smoothed line and a faster trigger line are included to assist with timing and momentum shifts.
Key Features
Based on the original TASC Reversion Index
Uses Ehlers Super Smoother filtering
Highlights overextension and reversion potential
Non-repainting, calculation-based indicator
Designed for discretionary and contextual analysis
Credits
Original concept: Published in Technical Analysis of Stocks & Commodities
Filtering methodology: John F. Ehlers
Implementation: Custom TradingView script
License
This script is provided free of charge for educational and analytical purposes.
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