TTM Reversion Bands for ThinkorSwim

BenTen

Administrative
Staff member
Staff
VIP
Lifetime
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.

RWWMfZ6.png

jeVSm90.png


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));
 

Attachments

  • RWWMfZ6.png
    RWWMfZ6.png
    122.1 KB · Views: 110
  • jeVSm90.png
    jeVSm90.png
    118 KB · Views: 101

Join useThinkScript to post your question to a community of 21,000+ developers and traders.

@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.
 
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?
 
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.
 

Similar threads

Not the exact question you're looking for?

Start a new thread and receive assistance from our community.

87k+ Posts
450 Online
Create Post

Similar threads

Similar threads

The Market Trading Game Changer

Join 2,500+ subscribers inside the useThinkScript VIP Membership Club
  • Exclusive indicators
  • Proven strategies & setups
  • Private Discord community
  • ‘Buy The Dip’ signal alerts
  • Exclusive members-only content
  • Add-ons and resources
  • 1 full year of unlimited support

Frequently Asked Questions

What is useThinkScript?

useThinkScript is the #1 community of stock market investors using indicators and other tools to power their trading strategies. Traders of all skill levels use our forums to learn about scripting and indicators, help each other, and discover new ways to gain an edge in the markets.

How do I get started?

We get it. Our forum can be intimidating, if not overwhelming. With thousands of topics, tens of thousands of posts, our community has created an incredibly deep knowledge base for stock traders. No one can ever exhaust every resource provided on our site.

If you are new, or just looking for guidance, here are some helpful links to get you started.

What are the benefits of VIP Membership?
VIP members get exclusive access to these proven and tested premium indicators: Buy the Dip, Advanced Market Moves 2.0, Take Profit, and Volatility Trading Range. In addition, VIP members get access to over 50 VIP-only custom indicators, add-ons, and strategies, private VIP-only forums, private Discord channel to discuss trades and strategies in real-time, customer support, trade alerts, and much more. Learn all about VIP membership here.
How can I access the premium indicators?
To access the premium indicators, which are plug and play ready, sign up for VIP membership here.
Back
Top