This indicator simply tracks the balance of the supply/demand and will always revert to the mean.
If the market is over bought it will move above the mean, hit a limit and come back toward the mean. Opposite for oversold.
The difference between this and MFI or RSI is that a market can move up or down in an organized fashion and stay close to the mean. It is impulsive moves up or down that will correct.
So a trader might be able to gauge whether an given stock has the likelihood to pullback or bounce based on this indicator.
The color indicator attempts to predict the color of the next bar.
Works well with Heiken Ashi style candles as well.
版本注释
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Added .. balance zone
版本注释
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Some small aesthetics. Note, the color indicator on the moving average is a prediction of the next bar color.
Added the ability to back test with a strategy and choose whether to trigger on the inside boundary or outside boundary.
Longer time frames seem to work best - try longer minute denominated time frames like 55min for 1hr, or 89min etc.. rather than using hour or day time frames.
Longer time frames seem to work best - try longer minute denominated time frames like 55min for 1hr, or 89min etc.. rather than using hour or day time frames.