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Mean Reversion Indicator — Buy the (DCA) Dip Signal (unbiased)
Description
The Mean Reversion Signal — Buy the Dip (unbiased) indicator is designed to detect high-probability reversion points within Bitcoin’s cyclical market structure. These signals only appear when momentum has either fully reset on the Stochastic RSI (SRSI) or when a positive momentum reversal is beginning to form.
It combines 6H Relative Strength Index (RSI) data with 2-Week Stochastic RSI (SRSI) dynamics to identify exhaustion and early accumulation phases.
Core logic:
A buy signal appears when the 6H RSI closes below 30, indicating local oversold conditions.
The 2W Stochastic RSI confirms momentum alignment when both K & D are below 20 (deep oversold), above 80 (strong ongoing rally), or when K crosses above D (positive reversal).
The indicator is cycle-aware — active only after a defined date (e.g., 2023-01-01) to ensure it aligns with current market structure and avoids noise from pre-cycle conditions.
Additionally, green signals from previous bull cycles (e.g., 2015, 2019, 2020) are also displayed to highlight historically similar accumulation phases, allowing for cross-cycle comparison.
Color zones:
🟩 High probability of a durable new rally
🟧 Moderate probability zone
🔴 Momentum already extended; potential continuation but weaker signal
Recommended combinations:
For a deeper confirmation framework, this signal pairs well with:
- CoinGlass: Derivatives Risk Index Chart (to assess market (de)leveraging and derivatives pressure)
- BTC Futures Sentiment Index (Axel Adler Jr.) — (to monitor directional sentiment shifts)
- CheckonChain: Bitcoin — Short-Term Holder SOPR (to track realized profit-taking activity)
- CheckonChain: Bitcoin — Short-Term Holder MVRV (to evaluate valuation risk relative to cost basis)
Use case:
This tool helps traders identify favorable mean-reversion opportunities while considering broader cycle context and momentum structure.
It is not financial advice — best used alongside macro structure analysis, derivatives positioning, and on-chain behavior for comprehensive decision-making.
The Mean Reversion Signal — Buy the Dip (unbiased) indicator is designed to detect high-probability reversion points within Bitcoin’s cyclical market structure. These signals only appear when momentum has either fully reset on the Stochastic RSI (SRSI) or when a positive momentum reversal is beginning to form.
It combines 6H Relative Strength Index (RSI) data with 2-Week Stochastic RSI (SRSI) dynamics to identify exhaustion and early accumulation phases.
Core logic:
A buy signal appears when the 6H RSI closes below 30, indicating local oversold conditions.
The 2W Stochastic RSI confirms momentum alignment when both K & D are below 20 (deep oversold), above 80 (strong ongoing rally), or when K crosses above D (positive reversal).
The indicator is cycle-aware — active only after a defined date (e.g., 2023-01-01) to ensure it aligns with current market structure and avoids noise from pre-cycle conditions.
Additionally, green signals from previous bull cycles (e.g., 2015, 2019, 2020) are also displayed to highlight historically similar accumulation phases, allowing for cross-cycle comparison.
Color zones:
🟩 High probability of a durable new rally
🟧 Moderate probability zone
🔴 Momentum already extended; potential continuation but weaker signal
Recommended combinations:
For a deeper confirmation framework, this signal pairs well with:
- CoinGlass: Derivatives Risk Index Chart (to assess market (de)leveraging and derivatives pressure)
- BTC Futures Sentiment Index (Axel Adler Jr.) — (to monitor directional sentiment shifts)
- CheckonChain: Bitcoin — Short-Term Holder SOPR (to track realized profit-taking activity)
- CheckonChain: Bitcoin — Short-Term Holder MVRV (to evaluate valuation risk relative to cost basis)
Use case:
This tool helps traders identify favorable mean-reversion opportunities while considering broader cycle context and momentum structure.
It is not financial advice — best used alongside macro structure analysis, derivatives positioning, and on-chain behavior for comprehensive decision-making.
開源腳本
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這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。
開源腳本
本著TradingView的真正精神，此腳本的創建者將其開源，以便交易者可以查看和驗證其功能。向作者致敬！雖然您可以免費使用它，但請記住，重新發佈程式碼必須遵守我們的網站規則。
免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。