OPEN-SOURCE SCRIPT
Guppy MMA Mean Reversion Signals
The Guppy MMA Mean Reversion System is a trend-following mean reversion tool designed to identify high-probability pullbacks within established trends. By combining the classic Guppy Multiple Moving Average (GMMA) with volatility, volume, and momentum filters, this script aims to reduce the "noise" often found in standard moving average cross strategies.
The Concept: Why this Works
Standard GMMA indicators are excellent for visualizing trend strength but often lack precise entry triggers or filters to avoid entering during periods of low volume or extreme exhaustion. This script addresses these limitations by integrating four distinct analytical components:
- GMMA Ribbons (Trend & Reversion Zones): We use two groups of EMAs (Short-term and Long-term). The Long-term group defines the "institutional" trend. Our entry logic looks for price to revert from the short-term trend back into the long-term trend zone—a classic sign of a healthy pullback.
- CVD Confluence (Volume Confirmation): Using Cumulative Volume Delta (CVD) based on candle-body delta approximations, the script ensures that volume flow supports the entry direction. This prevents entering pullbacks that lack the necessary buying/selling pressure to resume the trend.
- ATR Volatility Filter (Statistical Spacing): To avoid "choppy" entries, this filter requires the price to be at a statistically significant distance from the EMA based on market volatility (ATR). This ensures you are entering at a true "discount" rather than in a sideways market.
- RSI Exhaustion Filter (Momentum Safety): We utilize RSI to ensure that a reversion hasn't reached an overextended state. For example, it prevents buying a pullback if the RSI indicates the asset is already in an overbought exhaustion phase.
How to Use
- Long Entries (Green Circles): Triggers when the Long-term ribbon is bullish, and price pulls back to touch the Long-term EMA group, provided the CVD, ATR, and RSI conditions are met.
- Short Entries (Red Circles): Triggers when the Long-term ribbon is bearish, and price rallies to touch the Long-term EMA group, filtered by volume and momentum.
- Exits (Labels): Exit signals appear when price successfully reverts back to the "fast" Short-term group, marking the completion of the mean reversion move.
Key Features & Customization
- Independent Toggles: You can independently turn on/off buy signals, sell signals, and their respective exits to suit your specific trading style (e.g., only trading the long side).
- Signal Cooldown: Includes a customizable "bar count" cooldown to prevent multiple overlapping signals during high-volatility periods.
- Comprehensive Settings: Fully adjustable EMA lengths, ATR multipliers, and RSI thresholds to adapt the system to different timeframes and asset classes (Crypto, Forex, Stocks).
Settings Guide
- Use ATR Filter: Increase the multiplier for more conservative, wider entries.
- Use CVD Filter: Enable to ensure volume delta is trending with your entry.
- Use RSI Filter: Helps avoid "catching falling knives" by filtering out trades during extreme momentum spikes.
The Concept: Why this Works
Standard GMMA indicators are excellent for visualizing trend strength but often lack precise entry triggers or filters to avoid entering during periods of low volume or extreme exhaustion. This script addresses these limitations by integrating four distinct analytical components:
- GMMA Ribbons (Trend & Reversion Zones): We use two groups of EMAs (Short-term and Long-term). The Long-term group defines the "institutional" trend. Our entry logic looks for price to revert from the short-term trend back into the long-term trend zone—a classic sign of a healthy pullback.
- CVD Confluence (Volume Confirmation): Using Cumulative Volume Delta (CVD) based on candle-body delta approximations, the script ensures that volume flow supports the entry direction. This prevents entering pullbacks that lack the necessary buying/selling pressure to resume the trend.
- ATR Volatility Filter (Statistical Spacing): To avoid "choppy" entries, this filter requires the price to be at a statistically significant distance from the EMA based on market volatility (ATR). This ensures you are entering at a true "discount" rather than in a sideways market.
- RSI Exhaustion Filter (Momentum Safety): We utilize RSI to ensure that a reversion hasn't reached an overextended state. For example, it prevents buying a pullback if the RSI indicates the asset is already in an overbought exhaustion phase.
How to Use
- Long Entries (Green Circles): Triggers when the Long-term ribbon is bullish, and price pulls back to touch the Long-term EMA group, provided the CVD, ATR, and RSI conditions are met.
- Short Entries (Red Circles): Triggers when the Long-term ribbon is bearish, and price rallies to touch the Long-term EMA group, filtered by volume and momentum.
- Exits (Labels): Exit signals appear when price successfully reverts back to the "fast" Short-term group, marking the completion of the mean reversion move.
Key Features & Customization
- Independent Toggles: You can independently turn on/off buy signals, sell signals, and their respective exits to suit your specific trading style (e.g., only trading the long side).
- Signal Cooldown: Includes a customizable "bar count" cooldown to prevent multiple overlapping signals during high-volatility periods.
- Comprehensive Settings: Fully adjustable EMA lengths, ATR multipliers, and RSI thresholds to adapt the system to different timeframes and asset classes (Crypto, Forex, Stocks).
Settings Guide
- Use ATR Filter: Increase the multiplier for more conservative, wider entries.
- Use CVD Filter: Enable to ensure volume delta is trending with your entry.
- Use RSI Filter: Helps avoid "catching falling knives" by filtering out trades during extreme momentum spikes.
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ด้วยเจตนารมณ์หลักของ TradingView ผู้สร้างสคริปต์นี้ได้ทำให้เป็นโอเพนซอร์ส เพื่อให้เทรดเดอร์สามารถตรวจสอบและยืนยันฟังก์ชันการทำงานของมันได้ ขอชื่นชมผู้เขียน! แม้ว่าคุณจะใช้งานได้ฟรี แต่โปรดจำไว้ว่าการเผยแพร่โค้ดซ้ำจะต้องเป็นไปตาม กฎระเบียบการใช้งาน ของเรา
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สคริปต์โอเพนซอร์ซ
ด้วยเจตนารมณ์หลักของ TradingView ผู้สร้างสคริปต์นี้ได้ทำให้เป็นโอเพนซอร์ส เพื่อให้เทรดเดอร์สามารถตรวจสอบและยืนยันฟังก์ชันการทำงานของมันได้ ขอชื่นชมผู้เขียน! แม้ว่าคุณจะใช้งานได้ฟรี แต่โปรดจำไว้ว่าการเผยแพร่โค้ดซ้ำจะต้องเป็นไปตาม กฎระเบียบการใช้งาน ของเรา
คำจำกัดสิทธิ์ความรับผิดชอบ
ข้อมูลและบทความไม่ได้มีวัตถุประสงค์เพื่อก่อให้เกิดกิจกรรมทางการเงิน, การลงทุน, การซื้อขาย, ข้อเสนอแนะ หรือคำแนะนำประเภทอื่น ๆ ที่ให้หรือรับรองโดย TradingView อ่านเพิ่มเติมใน ข้อกำหนดการใช้งาน