Rotation Strong Holders

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Strong Holders Rotation
A mean reversion indicator with volatility-adjusted levels.

Concept:
The indicator is based on Mean Reversion Theory, which states that asset prices eventually return to their long-term average value. The greater the deviation from this mean value, the higher the probability of correction.

Unlike classical approaches that simply assume "the larger the deviation, the stronger the reversal," we've identified key threshold levels where reversal probability increases dramatically, generating high-confidence reversal signals.

Through extensive testing, we discovered that different stocks exhibit unique volatility profiles, making fixed threshold values ineffective. Our indicator dynamically adjusts overbought/oversold zones using:
- Beta coefficient (asset's sensitivity to market volatility)
- Multi-timeframe trend analysis (trend confirmation on higher timeframes)
- Adaptive Smoothed Moving Averages (SMMA)

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HOW TO USE

The indicator identifies three key zones:
1. Red (Upper) - Overbought zone, likely price reversal downward
2. Blue (Middle) - Shows the asset's current position relative to green and red zones, indicating overbought or oversold conditions
3. Green (Lower) - Oversold zone, potential upward bounce

Signals:
- Buy: When the blue line enters the zone where the stock price is too low to ignore (green band indicates oversold condition)
- Sell: When the blue line enters the zone where the stock price is too high to ignore (red band indicates overbought condition)

Dynamic Levels:
The overbought/oversold zone boundaries automatically adjust based on the beta coefficient (higher volatility assets have wider ranges)

Key Settings:
- `Base Index` (SPX, NDX, DJI) - Volatility comparison benchmark
- `Beta Calculation Period` - Lookback period (default: 252 days)

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The indicator's background serves as a supplementary confirmation signal, using higher timeframe moving average crosses:
- Red background: Consider avoiding or selling the stock
- Green background: Favorable buying conditions

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Limitations:
- May generate false signals for:
✓ Stocks in extreme trends (e.g., NVDA during AI chip boom)
✓ Companies at risk of bankruptcy

- Not optimized for:
✓ Index trading
✓ Healthcare sector stocks

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2 saat önce

Sürüm Notları

Strong Holders Rotation
A mean reversion indicator with volatility-adjusted levels.

Concept:
The indicator is based on Mean Reversion Theory, which states that asset prices eventually return to their long-term average value. The greater the deviation from this mean value, the higher the probability of correction.

Unlike classical approaches that simply assume "the larger the deviation, the stronger the reversal," we've identified key threshold levels where reversal probability increases dramatically, generating high-confidence reversal signals.

Through extensive testing, we discovered that different stocks exhibit unique volatility profiles, making fixed threshold values ineffective. Our indicator dynamically adjusts overbought/oversold zones using:
- Beta coefficient (asset's sensitivity to market volatility)
- Multi-timeframe trend analysis (trend confirmation on higher timeframes)
- Adaptive Smoothed Moving Averages (SMMA)

---

HOW TO USE

The indicator identifies three key zones:
1. Red (Upper) - Overbought zone, likely price reversal downward
2. Blue (Middle) - Shows the asset's current position relative to green and red zones, indicating overbought or oversold conditions
3. Green (Lower) - Oversold zone, potential upward bounce

Signals:
- Buy: When the blue line enters the zone where the stock price is too low to ignore (green band indicates oversold condition)
- Sell: When the blue line enters the zone where the stock price is too high to ignore (red band indicates overbought condition)

Dynamic Levels:
The overbought/oversold zone boundaries automatically adjust based on the beta coefficient (higher volatility assets have wider ranges)

Key Settings:
- `Base Index` (SPX, NDX, DJI) - Volatility comparison benchmark
- `Beta Calculation Period` - Lookback period (default: 252 days)

---

The indicator's background serves as a supplementary confirmation signal, using higher timeframe moving average crosses:
- Red background: Consider avoiding or selling the stock
- Green background: Favorable buying conditions

---

Limitations:
- May generate false signals for:
✓ Stocks in extreme trends (e.g., NVDA during AI chip boom)
✓ Companies at risk of bankruptcy

- Not optimized for:
✓ Index trading
✓ Healthcare sector stocks

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