Mean Reversion Indicator mt4

The High Low Cloud Trend indicator is a channel-based technical analysis tool that identifies trend direction and mean reversion opportunities through adaptive price boundaries. The system operates by calculating the highest high and lowest low over a specified lookback period, creating outer channel boundaries that define the overall price range. A secondary inner channel uses a shorter period (one-quarter of the main lookback) to capture more immediate price movements within the broader range. The indicator's core logic determines trend direction by comparing the closing price against a reference value that flips between the highest and lowest points based on where price touches these extremes - when price hits the lowest low, the reference switches to the highest high, and vice versa. This creates a binary trend state where the indicator displays either the lower channel (uptrend) or upper channel (downtrend) as filled histograms or lines. The mean reversion detection mechanism identifies specific crossover patterns where price moves back toward the inner channel after touching the outer boundary, generating arrow signals that pinpoint potential reversal entries. The dual-timeframe channel approach combined with flip-based trend logic makes this indicator particularly effective for range-bound markets while still capturing trending moves, with customizable alerts for both trend changes and mean reversion setups.

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