ETS Price Deviation Reversal Areas

6 Sep 2022

This indicator tracks the degree to which price moves away from an average and triggers potential direction changes based on standard deviation levels.

The reason I created this script is because I wanted to see how far price moved away from the moving average in a more clearly defined way than just saying "wow, price is pretty far away from the 9 EMA..." or whichever moving average you were looking at.

Typically when price moves "too far" away from the moving averages, it corrects itself, I think mainly because a lot of people say "wow, price is pretty far away from the 9 EMA..." and then enter a trade. This indicator tries to make it easier to see when that switches around, which could indicate that price will be reversing.

Of course the indicator is not a silver bullet, but I have found it pretty useful and I hope that you do too!

It also tries to avoid giving signals when prices are in a very small range. When the deviation bars contract, the indicator switches to only signal "breakout" type moves to try and limit whipsaw signals.

The smaller dots are spots that could indicate a potentially early reversal, and the larger dots show up a bit later when the reversal is a bit more established. There are also alerts that you can use if you want.

Change this code as you want to, but please let the community know and send me a message if you found something to share! Thanks!

6 Sep 2022

Nota Keluaran

Fixed a typo in the second alert.