The Mean Reversion Cloud (Ornstein-Uhlenbeck) indicator detects mean-reversion opportunities by applying the Ornstein-Uhlenbeck process. It calculates a dynamic mean using an Exponential Weighted Moving Average, surrounded by volatility bands, signaling potential buy/sell points when prices deviate.
TABLE OF CONTENTS
🔶 ORIGINALITY
🔸Adaptive Mean...
Description :
Mean Reversion Channel objective, based on Mean Reversion theory ( everything has a tendency to revert back to its mean), is to help visualizing:
Inner Channel -> Dynamic Support and Resistance
Outer Channel -> Overbought/Oversold Zone which may signal consolidation phase or potential reversal due to unsustainable move
Details on some of...