Growin Mean Reverting Radar

The Growin Mean Reverting Radar indicator is designed to identify mean reversion opportunities, enabling investors to accurately time reversals in overbought or oversold market conditions driven by sentiment, avoiding premature bottom-fishing or shorting traps. Its core features are:

1. Overbought/Oversold Assessment
   • Uses Average True Range (ATR) to evaluate overbought or oversold conditions, categorized into three levels
     • Light Yellow Zone (0~1 ATR): Neutral, mean range.
     • Yellow Zone (1~2 ATR): Indicates moderate buying/selling pressure, not yet overbought/oversold.
     • Deep Yellow Zone (2~3 ATR): Overbought/oversold range, signaling potential reversal risks.
     • .
2. Divergence Detection
   • Identifies reversal timing by detecting divergences in multiple oscillators (RSI, MFI, MACD, Histogram, etc.).
   • When the stock price is in the deep yellow zone (+2+3 ATR or -2-3 ATR) with divergence signals, a pullback is likely at highs, or a rebound at lows.

🌟 Usage Notes

The Mean Reverting Radar is ideal for short-term trades targeting price reversion to the mean (e.g., 20-day moving average) with high win rates but is not suitable for long-term holdings. For long-term positions, trend indicators should be prioritized to capture sustained price trends, avoiding losses from reversals after short-term mean reversion.