Impulse vs Reversion Map

Discretionary traders often misread a normal pullback as a trend break or mistake a shallow continuation leg for a mean‑reversion bounce. By quantifying and visually encoding the gap between price and EMA, under trend and RVOL context, this tool separates true impulsive legs from simple mean‑reversion, reducing emotional misreads of dips, bounces, and “chop.”
Output interpretation
Ribbon color:
Matrix green/red = trend‑aligned thrust legs (impulsive continuation, not just noise).
​Aqua/orange = mean‑reversion dips/rallies within an established trend.

Gap fill:
Green/maroon fill shows how far price is pulled away from the EMA; thicker and more extended fills = stronger disequilibrium.

State/HUD:
Text such as “UP THRUST (Aligned)” or “BULL MEAN REVERSION” plus stateId and zGap tells you instantly whether you should be thinking continuation or fade.

Operation
Attach the indicator to any chart; it auto‑reads price, EMA, ATR, volume, and computes Vegas and RVOL internally. Tune thrustZ and fadeZ so that green/red thrust zones only appear on the strongest legs for your instrument and timeframe, then adjust RVOL threshold to filter low‑energy sessions. Use the Visual Mode (Ribbon only / Fill only / Both) to manage clutter when stacking with Advisor/Compass and keep HUD enabled for quick state reading.


Strategy guide
Trend‑following entries:
Look to join Up Thrust or Down Thrust states when price pulls back toward the EMA but the ribbon stays matrix green/red and RVOL remains above threshold.


Mean‑reversion fades:
When the tool flags Bull Mean Reversion or Bear Mean Reversion, consider fading moves back toward Vegas/EMA rather than chasing the prior move.
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Trap and exhaustion reading:
If price extends far from EMA (high |zGap|) while the state flips away from thrust and RVOL remains high, treat new opposite‑color ribbons as potential traps/exhaustion and manage risk accordingly.