Alerta Mean Reversion PRO by Bruno Moscan

Mean Reversion Overstretch: A Strategic Distance-from-Mean Tool
Overview
Successful trading is often about identifying market exhaustion. When prices deviate too far from their historical average, the probability of a "rubber-band effect" (a sharp snap back to the mean) increases significantly.

This tool is a specialized Mean Reversion Oscillator and Visualizer designed to highlight extreme price dislocations. By calculating the percentage distance from a 100-period Moving Average (MA), it identifies high-probability zones for Long and Short entries where most traders are blinded by FOMO or FUD.

How It Works
1. The Core Logic (The Mean)
The tool tracks the 100-period Moving Average (default). This serves as the "fair value" of the asset.

Bullish Environment: When price is above the MA, the background turns a soft green, indicating the dominant trend is up.

Bearish Environment: When price is below the MA, the background turns a soft red, indicating the dominant trend is down.

2. Extreme Deviation Signals (The "Stretch")
The indicator triggers signals based on aggressive mathematical exhaustion points:

SELL/SHORT (The Blow-off Top): Triggered when the price reaches 100% above the MA. This identifies "parabolic" moves that are statistically unsustainable.

BUY/LONG (The Capitulation): Triggered when the price drops 40% below the MA. This identifies deep "oversold" conditions where a bounce is imminent.

3. Smart Filters (The Professional Edge)
To prevent "false positives," we’ve integrated two institutional-grade filters:

Volume Confirmation: Signals only trigger if the current volume exceeds the 20-period Volume MA. This ensures the move has the necessary "fuel" to mark a turning point.

Automatic Exit Points (Take Profit): The script marks an "X" on the chart when the price returns to the 100-MA. In mean reversion, the MA is your ultimate target.

Key Features
Fully Customizable: Tailor the MA period, source (Close, HL2, etc.), and percentage thresholds to fit any asset—from Blue Chip stocks to volatile Altcoins.

Visual Clarity: Clean labels and arrows for entries, and discrete symbols for exits.

Psychological Comfort: The subtle background coloring helps traders remain calm and aligned with the macro trend.

Alert Ready: Built-in alerts for Long and Short conditions so you never miss a trade even when away from your screen.

How to Trade with this Tool
Identify the Signal: Wait for the "BUY/LONG" or "SELL/SHORT" label.

Check the Context: Ensure the signal aligns with your risk management.

The Exit: Close the position (or take partial profits) when the price touches the 100-period Moving Average.

"The market is a pendulum that forever swings between unsustainable optimism and unjustified pessimism. This tool is designed to catch the pendulum at its peak."