“Market Anomaly Detector : Spot Reversals with Statistical Bands
2025-01-07
Category: None

Description:
The Market Anomaly Detector (MAD) uses advanced statistical calculations to detect price anomalies, providing accurate Buy and Sell signals for traders.

Look at the chart, how beautifully it captured the entire bull move.
Thats how this indicator is able to capture all the market abnormalities.
Key feature is to create the average price momentum thru these upper/lower bands and grey background shows that price is in expected price range.

Key Features:
	1.	Custom Statistical Bands:
	•	MAD calculates upper and lower price bands using the mean price and standard deviation, representing the expected price zones.
	•	Breaching these bands signals overbought or oversold conditions.
	2.	Z-Score-Based Detection:
	•	Detects significant price deviations from the norm, offering high-confidence signals for market reversals.
	3.	Momentum and Trend Filters:
	•	Combines RSI and multi-timeframe trend confirmation to ensure only reliable signals are generated.
	4.	Dynamic Background Colors:
	•	Color-coded zones for quick visual identification:
	•	Green for bullish momentum.
	•	Red for bearish momentum.
	•	Gray for neutral/expected zones.
	5.	Volume Filtering:
	•	Filters signals based on volume spikes, ensuring better accuracy in volatile markets.

How It Works:
	•	Buy Signal: Triggered when the price breaks below the lower band, aligning with bullish momentum and trend confirmation.
	•	Sell Signal: Triggered when the price breaks above the upper band, aligning with bearish momentum and trend confirmation.
	•	Visual Alerts: Green and red labels show Buy/Sell opportunities, while background colors highlight market sentiment.