RT-Machine Learning Reversion Bands

Machine Learning Reversion Bands is a support and resistance tool designed to highlight where trends have historically reverted and where price is pushing into unusually extreme territory. It plots two sets of bands around price so traders can see both standard reversion zones and more extreme, machine learning levels that adapt and learn from the chart over time.
Introduction
The Machine Learning Reversion Bands tool utilizes an algorithm that learns from the chart’s full visible history. Instead of manually scanning through years of candles, the script studies the data and builds machine learning bands that respond to how the asset has actually behaved over time.

This version retains the original red and green Reversion Bands and adds a second set of dynamic Machine Learning Bands that adapt to volatility. This gives the trader four levels to reference:

• Red and Green Reversion Bands for more traditional support and resistance reversion zones.
  
• Cyan and Orange Machine Learning Bands that adapt as new extremes form on the chart.

The red and green bands are tuned for more typical reversion behavior, while the cyan and orange bands are focused on those moves where price stretches beyond its usual range. This can help frame potential entries, exits, and risk around both normal and more extreme conditions.
Support Versus Resistance
Machine Learning Reversion Bands tracks four main levels of support and resistance:

Green and Red Bands - Standard Reversion Bands
These bands mark more common reversion points for many assets. They highlight areas where trends have historically run into exhaustion and reverted back toward the mean. When price approaches these zones, it is often interacting with regions where prior swings have slowed, paused, or reversed.
Cyan and Orange Bands - Machine Learning Reversion Bands
The cyan and orange band algorithm studies the asset by looking back at every candle that is available on the chart (as far as the user can scroll left). If there is a decade of data, the algorithm will use that full decade to learn how the asset has behaved in the past and then project where these cyan and orange bands should be overlaid.
In short, these ML bands give traders a view of where the tool estimates the more extreme extensions of a trend may be, based on historical behavior. In many cases, price will only touch the cyan and orange bands when it is moving into unusually strong or weak levels relative to its own past. Each time trends reach these orange or cyan levels, the tool updates from that price action so that its future projections continue to reflect what has already been seen.

A historical example of the cyan bands adapting to extreme bullish behavior on a DOGE chart.
A historical example of the cyan bands projecting resistance levels in an extremely bullish trend.
A historical example of the orange bands adapting to an EOS chart.
A second historical example of the orange bands adapting to a Ford chart.
Example Charts
The following examples show how price has interacted with the bands in specific historical periods. They are intended as illustrations of behavior, not as performance guarantees:

Tron - H4 - TRXUSDT - December 2024
Nvidia - H4 - NVDA - March 2020Tesla - H4 - TSLA - April 2022These historical example charts can be used to visually review how price has interacted with the bands in the past. They are illustrations of behavior, not performance statistics.

Settings and Tuning
Reversion Alert Markers are used to visualize when price is interacting with the bands and to help traders monitor potential reversion events. When enabled, these markers plot whenever price meets the internal conditions for a reversion touch inside one of the bands.
These markers can be toggled on and off in the settings of the tool. The markers can also be set to custom text/emojis per the trader's preferences:
The Bands can also be adjusted manually to fine tune the chart specifically to the asset that the trader is buying/selling:

• Smoothness Adjuster - Adjusts how sensitive the Bands are to price action.
  
• Top Bands Height Adjuster - Adjusts the vertical height of the Upper Bands.
  
• Bottom Bands Height Adjuster - Adjusts the vertical height of the Lower Bands.

The Bands themselves can also be adjusted visually to suit each trader's preference. The borders of the Reversion Bands as well as the shading of the Reversion Bands themselves can be adjusted to be brighter or darker by adjusting these two settings:

1. Band Transparency Adjuster - Adjusts the opacity of the Reversion Bands.
   
2. Border Transparency Adjuster - Adjusts the opacity/brightness of the Borders that are drawn around the Bands.

Example of the Reversion Bands and the Borders being set to be extremely bright:Example of the Reversion Bands and Borders set to be more transparent:The colors of the Bands and Borders can also be adjusted to meet the preferences of the trader. Below you can see each Band color being adjusted:Candle Filtering is an advanced tuning option that traders can use to enable the Reversion Alert Markers to only trigger during extreme price action movements that are tracked using the RT-Main Indicator.

Below is an example of Reversion Alert Markers operating in conjunction with the Colored Candles of the RT-Main Indicator running the default settings. By default, every candle color will trigger an Alert Marker when inside the Reversion Bands:
With Candle Filtering options enabled, the trader can set their chart to only display Alert Markers for White and Pink Candles that print from the RT-Main Indicator inside the Reversion Bands:For traders that utilize custom tunes on the RT-Main Indicator, the Reversion Bands Tool also has settings that can be used to bring the Pink/White Candle Filtering in synch with custom Candle Settings of the RT-Main Indicator:
Alert Automation
When setting up alerts for this tool, traders generally follow these parameters:

• 1st Condition - Select the RT-Machine Learning Reversion Bands Indicator.
  
• 2nd Condition - Select the desired alert condition that you want to monitor:
  Entering Green Band | Cyan Band | Red Band | Orange Band.
  
• Interval - Select Same as Chart.
  
• Trigger - Select Once Per Bar Close.
  

This approach allows the tool to serve as a visual and alert-based context layer for potential reversion areas, while entries, exits, and order execution remain under the trader's control.

How Traders Commonly Use The Bands
Some common ways traders incorporate Machine Learning Reversion Bands into their workflow include:

• Using the Green and Red Bands as reference points for more "typical" mean reversion areas within an ongoing trend.
  
• Watching the Cyan and Orange Bands for rare extensions that may mark areas of extreme strength or weakness relative to the asset's historical behavior.
  
• Combining Band touches with other tools such as RT-Main Indicator, pivots, or volume context to build confluence around potential trade locations.
  
• Reviewing past behavior in Replay mode to see how different assets have reacted to Band touches during various market regimes.
  

The tool is designed to act as a support and resistance map that adapts to each asset's history, rather than a rigid rule set.

What Makes This Tool Different
While many indicators draw static channels or volatility bands, Machine Learning Reversion Bands are designed to:

• Retain the familiar behavior of the classic Red and Green Reversion Bands while adding a second Machine Learning layer.
  
• Learn from all available chart history to estimate where more extreme extensions have historically occurred in the past.
  
• Provide four distinct Band levels so traders can distinguish between normal reversion zones and more unusual extremes.
  
• Offer optional markers and alert integration so reversion interactions can be tracked without watching every candle.
  

Important Note
Machine Learning Reversion Bands are intended to provide additional context around support, resistance, and potential mean reversion zones. They are not a standalone signal generator and should always be used together with your own analysis, testing, and risk management. Historical interactions with the Bands, including any back-test style examples, do not guarantee future results.

🐋 Tight lines and happy trading!