How Revert Signals works

The channel, its zones and the signals that fire at the channel edge. Read this before the settings pages.

Applies to Meanward Revert Signals v1.10Open app

Meanward Revert Signals draws a mean-reversion channel around price and labels the bars where a stretched move looks exhausted. It doesn't place orders and doesn't size a position. That's the strategy's job, and the strategy uses the same signal code.

The idea in four steps

The channel. A smoothed mean line and bands built from the smoothed true range. Price breathes inside it; the edges are where a move is stretched. See Channel and zones.
The zones. Four depth levels measured from the outer band: ultra-small, small, central and deep. Every signal needs the bar's close past the edge of its zone. See General.
FADE, the base signal. An overextension ends while price is still in the zone and the trend is strong against the signal. See FADE.
CONSENSUS, the main signal. A FADE confirmed by other components (RSI, divergence, MACD, ZONE) within a short window of bars. See CONSENSUS.

All signals are events at the edge of the channel. In the middle of the channel the indicator stays quiet on purpose.

Signals and labels

Signal	Short label	Long label	Labels shown by default	Counts for CONSENSUS by default
CONSENSUS	`CONSENSUS SHORT`	`CONSENSUS LONG`	yes	(it's the result)
FADE	`S-FADE`	`L-FADE`	yes	required on the same bar
RSI	`S-RSI`	`L-RSI`	no	yes
Divergence	`S-DIV`	`L-DIV`	no	yes
MACD	`S-MACD`	`L-MACD`	no	no
ZONE	`S-ZONE`	`L-ZONE`	no	no

S- means short (price stretched up), L- means long (price stretched down). The Show … signals switches only hide labels. The events behind them are still computed, still feed CONSENSUS and still trigger alerts.

Short and long are always a warm and a cool colour; the full palette is on Colors.

Alerts

Version 1.10 has six alert conditions. They fire on the signal events themselves, so hiding a label doesn't switch its alert off:

Alert condition	Fires when
FADE Long / FADE Short	a FADE event, long or short
CONSENSUS Long / CONSENSUS Short	a CONSENSUS event, long or short
Small zone touch	the bar's high crosses above the upper small-zone edge, or its low crosses below the lower one
Deep zone touch	the same for the deep zone

Create them with the trigger Once Per Bar Close: signals are decided on the bar's close. These alerts send plain text for you to read. Alerts a bot can execute come from the strategy.

The settings pages

The pages follow the order of the groups in the TradingView settings dialog:

Then three reference pages that cut across groups: Anti-spam (the repeat filter every signal group shares), Auto settings by timeframe and Colors.

Colours and line widths live in the Style tab of the dialog. Changing them never changes a signal.

What it isn't

Not a buy or sell recommendation, and it promises nothing about any outcome.
Not a complete trading system: no entries, exits or position sizing. That's Meanward Revert Strategy.
Not a predictor. It marks where price is stretched and the move looks exhausted; it can't tell you whether price comes back this time.

Credits

The channel core is based on the open-source Mean Reversion Channel (fareid's MRI Variant) by fareidzulkifli (MPL 2.0). The smoothing is John Ehlers' SuperSmoother filter. The zones, the signal layer and the trend block are Meanward's own code.

Bottom line: put it on a chart with the defaults, watch CONSENSUS labels for a week, then open the pages for the groups you want to change.