Mean reversion opportunity
A 0 to 100 score for price stretched past a band edge; with default wiring it draws nothing.
It places the close on a scale where the middle band is 0 and each band edge is +1 or -1, using the upper, lower and middle band lines it is wired to. Past 0.8 of the way to an edge it scores 50 times the distance from the middle in half-band units, capped at 100, so about 40 at 0.8 and 50 at the edge; it then multiplies by 1.3 when RSI agrees (below -0.5 for a low, above +0.5 for a high). Inside the middle 80% of the band the score is 0, and when the band lines have no width it returns nothing.
How to read it
- Markers sit on candles; the score behind each one is the strength, and it is not a yes or no.
- At a band edge the score is 50, or 65 when RSI agrees. It reaches 100 only half a band-width past the edge.
- Inside the middle 80% of the band the score is 0, meaning no stretch.
- With the default wiring every band line equals the close, so the band width is zero and nothing draws.
What it outputs
- Stretch score
- A 0 to 100 score for how far the close sits past 80% of the half band-width from the middle, toward an edge. Higher means a stronger stretch. It is a graded score, not a yes or no.
When it fires
Fires on candles where the close is more than 80% of a half band-width from the middle, toward an edge. Those candles score 40 to 100. Candles inside the middle 80% score 0, which is still a value, so a marker can sit on a candle with no stretch; read the score.
Pitfalls
- With default wiring it never fires: the band inputs have no default, so all three get the close, the band width is zero, and nothing is returned. Zero events on about 20,000 SPY one-minute bars.
- The name says ranging markets, but the code has no range or trend filter. A close past 80% of the band scores the same in a strong trend, so a high score is not a reversal.
- The RSI boost uses fixed thresholds of ±0.5 and a fixed 1.3 multiplier, and no parameter lets you tune them.