price action reversion bands - [SigmaStreet]


The "Price Action Reversion Bands" is designed to help traders identify potential reversal zones through the integration of polynomial regression, fractal analysis, and pinbar detection. This tool overlays directly onto the price chart, providing dynamic visual cues and signals for market reversals. Its unique synthesis of these methodologies offers traders a powerful, multifaceted approach to market analysis.


Polynomial Regression Bands:

What It Does:
Models the main trend using a polynomial equation to create a middle trend line with dynamic support and resistance bands.
How It Works:
Calculates polynomial coefficients to plot a regression line and adjusts the bands according to market volatility and conditions.
Fibonacci Retracement Levels:

What It Does:
Provides additional lines inside the regression bands at key Fibonacci ratios to identify potential support and resistance areas.
How It Works:
Calculates retracement levels by identifying high and low points over the same period used to calculate the regression bands, applying Fibonacci ratios to these points.

Fractal Analysis:

What It Does: Identifies natural resistance and support levels, indicating potential reversal zones.
How It Works: Detects fractals based on a specific pattern of price action, using Williams Fractal methodology.

Pinbar Detection:

What It Does: Signals potential price reversals through pinbar candlestick patterns.
How It Works: Analyzes
candlesticks to identify pinbars which show a rejection of prices, suggesting possible reversals.


The price action reversion bands distinguishes itself through its innovative integration of several advanced analytical methods, providing traders with a holistic view of potential market reversals:

Unique Combination:

While many tools use these techniques in isolation, this indicator synergistically combines polynomial regression, Fibonacci retracement levels, fractal analysis, and pinbar detection. This multi-faceted approach allows traders to assess strength, potential reversal zones, and price rejection more effectively than using traditional single-method indicators.

Advanced Polynomial Regression Application:

Unlike standard regression tools that offer static insights, this indicator dynamically adjusts its regression bands based on real-time market volatility, providing a more accurate reflection of market conditions.

Enhanced Signal Reliability:

By using fractals and pinbars in conjunction to validate each other, the indicator significantly increases the reliability of its reversal signals. This dual-validation method filters out less probable signals, focusing on high-probability trading opportunities.

Customization and Flexibility:

It offers unprecedented customization options, allowing traders to fine-tune the tool according to their trading style and market conditions. Traders can adjust the polynomial degree, the sensitivity of the Fibonacci retracements, and even the definition of what constitutes a significant pinbar, making it highly adaptable to various trading scenarios.

Educational Value:

The indicator not only aids in trading but also serves as an educational tool that helps traders understand the interaction between different types of market analysis techniques. This contributes to a deeper knowledge base and better trading decisions over time.
These distinctive features make the "Price Action Reversion Bands - " not just another indicator but a comprehensive trading tool that enhances decision-making through a well-rounded analysis of market dynamics.


Installation and Setup:

Apply the indicator to your TradingView chart from the "Indicators" menu.
Select either polynomial regression or Fibonacci retracement as the basis for the bands through the indicator settings.
Reading the Indicator:

Monitor the approach of price to the upper and lower bands which indicate potential reversal zones.
Look for fractal and pinbar formations near these bands for additional signal confirmation.

Adjust settings such as the polynomial degree, data window length, and engagement zones to tailor the bands to your trading style.
Modify visual aspects like color and line type for better clarity and personal preference.


Dynamic Adjustment:

Bands adjust in real-time based on incoming price data and selected settings.
Multiple Analysis Techniques: Combines several analytical techniques to provide a comprehensive view of potential market movements. The integration of polynomial regression with Fibonacci levels, supplemented by fractal and pinbar analysis, marks this tool as particularly innovative, offering a level of synthesis that enhances predictive accuracy and usability.
User-Friendly Customization: Allows for extensive customization to suit individual trading strategies and preferences.


Market Dependency:

Performance may vary significantly across different markets and conditions.
Parameter Sensitivity: Requires fine-tuning of parameters to ensure optimal performance, which might demand a steep learning curve for new users.


For best results, combine this tool with other forms of analysis, such as fundamental analysis and other technical indicators, to confirm signals and enhance decision-making.


Special thanks to the PineCoders community the Pine Coders themselves for their foundational contributions to the concepts used in this script. Their pioneering work in the fields of technical analysis and Pine Script development has been invaluable. This script is a testament to the collaborative spirit of the TradingView developer community, integrating analytical techniques with innovative approaches to offer a tool that is both modern and cutting-edge.


本着真正的TradingView精神,该脚本的作者将其开源发布,以便交易者可以理解和验证它。为作者喝彩!您可以免费使用它,但在出版物中重复使用此代码受网站规则的约束。 您可以收藏它以在图表上使用。