I wanted to apply an RSI filter to some of the new Candlestick Patterns (in the indicators tab) since some of them looked to be quite effective for picking reversals. Turns out it's a pretty good pairing.
You can modify the RSI length in addition to the upper and lower thresholds. I also added in check boxes to combine different bullish and bearish patterns.
A hammer candle is defined here as 1) the lower shadow (wick) is at least twice the length of the main body and 2) the close is in the top half of the range.
A shooting star has the opposite conditions 1) the upper shadow is at least twice the size of the main body and 2) the close is in the lower half of the range.
These candles should not be used by themselves...
Forex Master v4.0 is a mean-reversion algorithm currently optimized for trading the EUR/USD pair on the 5M chart interval. All indicator inputs use the period's closing price and all trades are executed at the open of the period following the period where the trade signal was generated.
There are 3 main components that make up Forex Master v4.0:
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...
This is based on the indicator TD Sequential:
This is an easy way to test it out to see what works and what doesn't.
There are moving average exits for both the long side and short side. You can pick from SMA, EMA, VWMA. This also applied to a moving average trend filter. This is separated for the long...
The Bollinger Imbalance Oscillator is used for *mean reversion* purposes only.
It uses Double Bollinger deviation levels to determine each level of perceived imbalance.
When price start to revert to its mean after an imbalance, small char-type arrows appear to assist with direction.
This oscillator also includes a squeeze feature on the center-line, based on...
A port of the TradeStation EasyLanguage code for a mean-revision strategy described at
"In “Mean-Reversion Swing Trading,” which appeared in the December 2016 issue of STOCKS & COMMODITIES, author Ken Calhoun
describes a trading methodology where the trader attempts to enter an existing...
Ok, Here we go - Version 1 of TTM Reversion Band goes live.
Link to TTM Reversion Band - www.tradethemarkets.com
Link to TTM Reversion Band Guide - kb.simplertrading.com
John Carters Mastering the trade - www.amazon.com
For the amount of...
The strategy checks nature of the instruments. It Buys if the close is greater than yesterday's high, reverse the position if the close is lower than yesterday's low and repeat the process.
1. If it is trend following then the equity curve will be in uptrend
2. If it is mean reverting then the equity curve will be downtrend
Thanks to Rayner Teo.
Count of previous bars above or below a chosen Exponential Moving Average. Typically price reconnects with well defined EMAs regularly. If the price has been above/below an EMA for too long, you can expect a reconnect in a short order and bet on mean reversion strategies.
This strategy is for learning purposes only. Pay special attention to these strategies on longer aggregation periods (like 1 hr chart or more). Don't expect accurate results when you set a limit to 10 cents above your entry to be accurate. For example if you set the chart to 1 day, the price may move down and hit a stop 10 times then tag your limit. If this...
This is based on my GMS: Mean Reversion Indicator ()
- % Based Profit Target and Stop Loss
- SMA Trend Filter
- Can choose trade exit based off a moving average or linear regression curve
- Filter for long only trades, short only trades, or both at the same time.
Source code is...
// This is a simple Mean Reversion & Breakout Indicator.
// A Donchian Channel is plotted. A threshold equal to 0.25 of Daily ATR.
// If price reverses from this threshold, then it can be taken as possible Mean Reversion.
// If price crosses the previous Donchian levels, it can be taken as a possible breakout.
// Typical of such strategy is the whipsaw effect...