Forex Mean Reversion

Platform: MT4

Last update: June 10, 2021

Welcome to Forex Mean Reversion.

Leading and Lagging indicators don’t work. Leading indicators don’t lead with any form of reliability and Lagging indicators, as the name suggests, lag. Forex Mean Reversion is a profitable Forex Trading system which uses a real-time indicator. It provides a true indication of when a market is truly Overbought or Oversold. It works for ALL instruments on ALL time-frames.

BECAUSE – It’s a real-time indicator based on a fundamental fact

The indicator calculates and displays a Mean (price) and then it calculates two levels either side of the mean, based on percentage movements derived from the Average True Range. Level 1 is a suggested Entry level (where a reversion to the mean is expected) and Level 2 is a suggested Stop level (where historically, prices rarely, if ever, extend to). Both levels, as well as the mean setting (the Target), are user defined and are adjusted the same way as settings for other Technical indicators.

The indicator alone is much more reliable than Stochastic, RSI, MACD for identifying when ANY instrument on ANY time-frame is truly Overbought/Oversold

Forex Mean Reversion can clearly be used as a Trading system in its own right by using the suggested Entry, Stop and Target levels or it can be used as an indicator to complement existing strategies.

The manual that comes with this indicator provides details on how to install the template and indicator as well as instructions on how to trade the Forex Mean Reversion system and adjust the indicator settings. I also provide some recommended settings later in the manual to help get you started.

However, the versatility of the indicator means that you should always align it to the most recent market conditions for the currency pair/ timeframe you are intending to trade to get the most accurate and profitable trading results.