Mean Deviation Loop | Lyro RS

vor 4 Tagen

The MAD Bollinger Bands + Loops is a sophisticated technical analysis tool designed to identify and quantify market trends by combining dynamic moving averages with robust statistical dispersion measures. This indicator employs a multi-model approach, integrating Bollinger-style MAD bands, for-loop momentum scoring, and a hybrid signal system to provide traders with adaptive insights across varying market conditions.

Indicator Modes

1. Bollinger-Style MAD Bands
   This mode calculates dynamic volatility bands around price using Mean Absolute Deviation (MAD) instead of standard deviation or RMSE. MAD offers a smoother and more outlier-resistant measure of price dispersion.
   Upper Band = Dynamic Moving Average + (MAD × Multiplier)
   Lower Band = Dynamic Moving Average − (MAD × Multiplier)
   
   These bands expand and contract with market volatility, helping to identify potential breakout and breakdown zones with reduced sensitivity to extreme price spikes.
   
   
2. For-Loop Momentum Scoring
   Momentum is evaluated by analyzing recent price behavior through a loop-based comparison system applied to a MAD-weighted price series.
   A rising momentum score indicates strengthening bullish pressure
   A declining momentum score signals increasing bearish dominance
   
   This method emphasizes directional consistency rather than short-term noise.
   
   
3. Hybrid Combined Signal
   This mode combines the outputs of the MAD Bands and For-Loop Momentum Scoring into a unified directional signal.
   
   • +1 indicates bullish conditions (green)
     
   • −1 indicates bearish conditions (red)
     
   
   An average of these scores is calculated to generate a combined signal, providing a clearer and more reliable indication of overall market trend.
   

Practical Application

Signal Interpretation

• A buy signal is generated when both the MAD Bands and For-Loop Momentum align bullishly.
  
• A sell signal is generated when both components align bearishly.
  

Trend Confirmation
The Hybrid Combined Signal serves as a confirmation layer, helping traders validate trend direction and reduce the likelihood of false signals during choppy or low-volatility conditions.

⚠️ Disclaimer
This indicator is a technical analysis tool and does not guarantee results. It should be used in conjunction with additional analysis methods and proper risk management strategies. The creators of this indicator are not responsible for any financial decisions made based on its signals.

vor 4 Tagen

Versionshinweise

Update: Chart Fix.

vorgestern

Versionshinweise

Update: Logic Fix.