OPEN-SOURCE SCRIPT
MR SATURN
**Mean Reversion Oscillator (MR Osc)**
This indicator measures how far price has deviated from its statistical mean and signals when that deviation is likely to reverse. It is designed for TradingView (Pine Script v6) and plots as a standalone oscillator pane below the chart.
**Indicators used:**
- **Z-Score** — the core calculation. It takes the difference between price and a moving average, then divides by the standard deviation over the same lookback period. The result tells you how many standard deviations price currently sits from its mean. Values beyond ±2.9 are considered statistically extreme.
- **Moving Average (SMA/EMA/WMA/RMA)** — user-selectable, used as the mean baseline for the z-score calculation.
- **Standard Deviation** — measured over the same lookback window, used to normalize the deviation into z-score units.
**Signals:**
- **Circle (primary)** — fires when the z-score reaches the extreme threshold (default ±2.9) and begins turning back, indicating a potential mean reversion.
- **Diamond (confirmation)** — fires a few candles later when the z-score crosses back through a user-defined level (default ±0.5), confirming the trend has actually shifted rather than just stalling at the extreme.
**Visual elements:** a red band above zero and a teal band below zero mark the neutral transition zone, with dotted reference lines at ±2.0σ and the current threshold and confirmation levels drawn dynamically on the pane.
This indicator measures how far price has deviated from its statistical mean and signals when that deviation is likely to reverse. It is designed for TradingView (Pine Script v6) and plots as a standalone oscillator pane below the chart.
**Indicators used:**
- **Z-Score** — the core calculation. It takes the difference between price and a moving average, then divides by the standard deviation over the same lookback period. The result tells you how many standard deviations price currently sits from its mean. Values beyond ±2.9 are considered statistically extreme.
- **Moving Average (SMA/EMA/WMA/RMA)** — user-selectable, used as the mean baseline for the z-score calculation.
- **Standard Deviation** — measured over the same lookback window, used to normalize the deviation into z-score units.
**Signals:**
- **Circle (primary)** — fires when the z-score reaches the extreme threshold (default ±2.9) and begins turning back, indicating a potential mean reversion.
- **Diamond (confirmation)** — fires a few candles later when the z-score crosses back through a user-defined level (default ±0.5), confirming the trend has actually shifted rather than just stalling at the extreme.
**Visual elements:** a red band above zero and a teal band below zero mark the neutral transition zone, with dotted reference lines at ±2.0σ and the current threshold and confirmation levels drawn dynamically on the pane.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.