FlatBottomReversion

FlatBottomReversion is a mean‑reversion tool that combines multi‑timeframe Heikin‑Ashi trend analysis with flat‑bottom/top detection to catch high‑probability intraday reversals. The indicator also includes an optional Keltner Channel.

⚙️ Usage

It works on any timeframe and candle style, but it was developed specifically for a 3‑minute Heikin Ashi chart. Results may vary significantly if a different chart type or timeframe is used.

⚠️ Tips
Like other reversion tools, separate confirmation is recommended. For example, checking whether the outer Keltner bands have been touched. Waiting for the high or low of the firing candle to be broken is also advised.

Be cautious on strong trend days, as fakeouts can occur. The indicator performs best on ranging days.

The Point Tolerance setting lets you “blur” what qualifies as a flat candle. Perfectly flat candles are the most reliable but happen infrequently. Adding a few points to the tolerance can help in volatile markets, but it may also reduce reliability.

The trend section is a non‑visible version of the PorchTrendLines indicator. It functions similarly to using three SMAs: when the average shows an overbought or oversold area, it may indicate a reversion is likely. The default settings work well on a 3‑minute Heikin Ashi chart but may need adjusting for other setups.


🧪 Inputs you can adjust

• Entry & Exit--Controls how the lines are plotted.
  
• Trend Settings--Define which timeframes, lengths, and thresholds determine overbought/oversold conditions.
  
• Keltner Channels – Show or hide the bands, change length, and adjust the multiplier.
  

🔔 Built‑in alerts (how they behave)
Flat Bottom Entry:
Fires in real time while the candle is forming. This alert is good for a notice to “look up, a setup may be building.” However it will have false‑alarms due to candles later failing criteria.

Flat Bottom Entry with Trend:
Fires only when lines are actually plotted. When this fires the criteria are confirmed. If the reversion is fast though you may miss the best entry if you aren't ready for it.