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UnknownUnicorn508364

SMA Imbalance Oscillator

UnknownUnicorn508364 Updated   
Oscillators Centered Oscillators Moving Averages meanreversion mean-reversion rubberband sma imbalance equilibrium
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5
oscillator centeredoscillator movingaverage meanreversion mean-reversion rubberband sma imbalance equilibrium
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.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

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