# TTM Reversion Bands for ThinkorSwim

#### BenTen

Staff member
Staff
VIP
This indicator is called TTM Reversion Bands, and it's designed for mean reversion trading. When the stock's price is near the reversion bands, it's at an extreme and will generally revert to the mean over time.

### thinkScript Code

Code:
# TTM - Reversion Bands
# Assembled by BenTen at useThinkScript.com
# Converted from https://www.tradingview.com/script/JpAQTvZH-UCS-TTM-Reversion-Bands/

input length = 25;
input atrlen = 25;
input mult = 2.5;

def tr = Max(close[1], high) - Min(close[1], low);
def range = tr;

def ma = expAverage(close, length);
def rangema = expAverage(range, atrlen);
def upper = ma + rangema * mult;
def lower = ma - rangema * mult;

plot u = upper;
plot moving = ma;
plot l = lower;

u.setDefaultColor(getColor(0));
l.setDefaultColor(getColor(1));
moving.setDefaultColor(getColor(3));

##### Member
Ben. Is this best at daily?

#### BenTen

Staff member
Staff
VIP
@RPrado You would have to make that decision yourself. Test it out and see if the indicator is something you would use on the daily or any other timeframe.

##### Active member
2019 Donor
Any way to make this a MTF indicator ?

#### Vorlauf

##### Member
How is this different that the bollinger or keltner channels?

#### MerryDay

Staff member
Staff
VIP
@Vorlauf This study creates bands based on the range of price times a multiplier.
Bollinger is a standard deviation calculation. As a strategy, they would be used similiarly.

#### Swamp_Gritz

##### New member
This is great! thank you I’m using this on one of my Strategy’s. Mean reversion plays of course with oversold / over bought indicator added thanks.

What’s the difference between this and bolinger bands?

Staff member
Staff
VIP

#### samport

##### New member
John Carter speaks on this indicator in his book and gives some useful insight on how to use it for swing trading. To summarize he states to first look for squeezes and avoid reversion to the mean (RTM) during the squeeze as it is unpredictable. Once a stock makes a move that is a few ATR above/below the mean then look to go long/short options or better would be credit spreads as theta would actually help you even if it hangs around extended. The settings to use on the daily chart is recommended as 13, 13, 1.5 and for intraday 25, 25, 2.5. I like the indicator and feel it is one of simplest for RTM strategies.

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