// Mean Reversion with Confirmation Indicator
// This indicator identifies potential mean reversion opportunities with
confirmation signals
// Strategy: Enter when price overextends from mean and shows reversal signals,
exit when price returns to mean
//@version=5
indicator("Mean Reversion with Confirmation", overlay=true)
// Input parameters
bb_length = input.int(20, "Bollinger Band Length", minval=1)
bb_mult = input.float(2.0, "Bollinger Band Multiplier", minval=0.1, step=0.1)
rsi_length = input.int(14, "RSI Length", minval=1)
rsi_oversold = input.int(30, "RSI Oversold Level", minval=1, maxval=100)
rsi_overbought = input.int(70, "RSI Overbought Level", minval=1, maxval=100)
vwap_use = input.bool(true, "Use VWAP")
show_signals = input.bool(true, "Show Entry/Exit Signals")
// Calculate indicators
[bb_middle, bb_upper, bb_lower] = ta.bb(close, bb_length, bb_mult)
rsi = ta.rsi(close, rsi_length)
vwap_value = ta.vwap(close)
// Plot Bollinger Bands
plot(bb_middle, "BB Middle", color.blue)
plot(bb_upper, "BB Upper", color.red)
plot(bb_lower, "BB Lower", color.green)
// Plot VWAP if enabled
plot(vwap_use ? vwap_value : na, "VWAP", color.purple, 2)
// Reversal detection
price_above_upper = close > bb_upper
price_below_lower = close < bb_lower
rsi_overbought_signal = rsi > rsi_overbought
rsi_oversold_signal = rsi < rsi_oversold
// Detect potential entry signals
long_signal = price_below_lower and rsi_oversold_signal and (not vwap_use or close
< vwap_value)
short_signal = price_above_upper and rsi_overbought_signal and (not vwap_use or
close > vwap_value)
// Detect potential exit signals
exit_long = close >= bb_middle
exit_short = close <= bb_middle
// Plot entry signals
plotshape(show_signals and long_signal, "Long Signal", shape.triangleup,
location.belowbar, color.green, size=size.small)
plotshape(show_signals and short_signal, "Short Signal", shape.triangledown,
location.abovebar, color.red, size=size.small)
// Plot exit signals
plotshape(show_signals and exit_long and long_signal[1], "Exit Long", shape.xcross,
location.abovebar, color.green, size=size.tiny)
plotshape(show_signals and exit_short and short_signal[1], "Exit Short",
shape.xcross, location.belowbar, color.red, size=size.tiny)
// Alert conditions
alertcondition(long_signal, "Long Entry Signal", "Price below lower BB with
oversold RSI")
alertcondition(short_signal, "Short Entry Signal", "Price above upper BB with
overbought RSI")
alertcondition(exit_long, "Exit Long Signal", "Price returned to mean")
alertcondition(exit_short, "Exit Short Signal", "Price returned to mean")
// Display indicator values in a table
var table info_table = table.new(position.top_right, 3, 5, color.gray, color.black,
2, color.white, 2)
if (barstate.islast)
table.cell(info_table, 0, 0, "Indicator", bgcolor=color.gray,
text_color=color.white)
table.cell(info_table, 1, 0, "Value", bgcolor=color.gray,
text_color=color.white)
table.cell(info_table, 2, 0, "Signal", bgcolor=color.gray,
text_color=color.white)
table.cell(info_table, 0, 1, "RSI", bgcolor=color.gray, text_color=color.white)
table.cell(info_table, 1, 1, str.tostring(rsi, "#.##"), bgcolor=color.black)
table.cell(info_table, 2, 1, rsi > rsi_overbought ? "Overbought" : rsi <
rsi_oversold ? "Oversold" : "Neutral",
bgcolor=rsi > rsi_overbought ? color.red : rsi < rsi_oversold ?
color.green : color.black)
table.cell(info_table, 0, 2, "BB Position", bgcolor=color.gray,
text_color=color.white)
table.cell(info_table, 1, 2, str.tostring((close - bb_middle) / (bb_upper -
bb_middle), "#.##"), bgcolor=color.black)
table.cell(info_table, 2, 2, close > bb_upper ? "Above Upper" : close <
bb_lower ? "Below Lower" : "Inside Bands",
bgcolor=close > bb_upper ? color.red : close < bb_lower ?
color.green : color.black)
if (vwap_use)
table.cell(info_table, 0, 3, "VWAP", bgcolor=color.gray,
text_color=color.white)
table.cell(info_table, 1, 3, str.tostring(vwap_value, "#.##"),
bgcolor=color.black)
table.cell(info_table, 2, 3, close > vwap_value ? "Above VWAP" : "Below
VWAP",
bgcolor=close > vwap_value ? color.red : color.green)
