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Median Grid Indicator for Grid Traders

5

Concept

Mean reversion is a concept in trading based on prices eventually returning to their mean or average level after a period of divergence or departure from the historical mean.

Traders deploying mean reversion techniques typically wait for assets to diverge significantly from their mean values and then place trades on the assumption the price will return to the mean at some point in the future- this is also known as re-coupling or convergence. There are several mean reversion based trading systems which use Median Grids (grids), Bollinger Bands or Keltner Channels as entry and exit methods. It is important to be aware of fundamental factors when deploying mean reversion trading techniques as a sustained move away from an assets historical mean could be driven by fundamental factors which may create extreme divergence.

The Median Grid is based on the principle of mean reversion. On higher timeframes price typically reverts to its mean figure. Trading based on grids is discussed extensively in Dirk Du Toit's book called 'Bird watching in Lion Country'.

This type of trading suits medium to longer term position traders. The Median Grid module provides an automated calculation based on the 28 day moving average of price action. The grid is displayed as the mean price with 4 standard deviation levels which have default values of -2, -1, +1, +2. The indicator is fully configurable and allows changes to:

  • Moving average calculation period
  • Number of standard deviations
  • Line colors
  • Line widths and lengths
  • Label size and position


Benefits

The Median Grid Indicator is a useful tool for the longer term position trader who wants to see where price action is in relation to long term standard deviation. Traders would be looking for turning points at typically high levels of divergence from the mean, in other words, where price action is a long way from its typical average or mean level.

Reviews 2
Barend Van Vugt
213
Barend Van Vugt 2020.10.21 19:14 
 

I am very Happy with it the grid is perfect and also with standard settings ;-)

Peter
1093
Peter 2018.07.13 14:08 
 

Great indicator for mean reversion! Indicator works flawless without any issues.

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Introduction The Monthly pivots indicator calculates and displays monthly pivot levels on MT4 charts. The indicator allows the trader to adjust the calculation window so that the pivots can be synchronised with the market the trader is active within. So traders looking to trade the London open or the US open can adjust the calculation basis of the pivot system so that the pivots on their chart are the same as the majority of the market participants. All the FX AlgoTrader pivot systems use HOURLY
The MACD Turbo indicator provides a highly configurable enhanced MACD indicator with histogram, push notifications, pop-up and email alerts. Traders can customize the MACD calculation parameters to meet their needs and also control the alert system based on their requirements. The alert module produces alerts when the MACD line crosses the 'Watermark' or zero level and also when the MACD and Signal lines crossover. Traders can choose the nature of the crossover modes which can be 'Printed' - whe
RSI Alert Pro
Crispin Scruby
4.67 (3)
RSI Alert Pro is a highly configurable RSI indicator with rich alerts and RSI level monitoring features. Input Parameters Parameter Permitted Values Description Use Alerts Pro Voice Synthesis module true/false Provides voice synthesized alerts for Traders with the Alerts Pro module (additional purchase required) Enable Push Notifications true/false If set to true the system will send push notifications to any MT4 mobile platform the trader is licensed for RSI Period Integer values from 1
The Crossover Alert System is a highly configurable MT4 indicator which incorporates a fully automated alert system for potential trading signals generated by Stochastic Crossovers. The system has the following features: 'Touch' alert option - where the stochastics momentarily touch above or below the trader defined trigger thresholds 'Printed' alert option - where the stochastics have acually formed a crossover in the last chart period. Email alert option Configurable High and Low Trigger Zones
The Moving Average / Price Proximity Alert system is a highly configurable MT4 indicator which incorporates a fully automated alert system for monitoring a trader defined moving average in relation to price action. Automatically receive alerts when price action touches or crosses over a trader defined moving average Push alert capability Email alert options On screen pop up options Configurable alert module Precision Alert Controls Traders can control: The minimum time between alerts in second
Advanced MA Crossover Alert System   The FX AlgoTrader Advanced Moving Average Crossover Alert System is a highly configurable MT5 indicator which incorporates a fully automated alert system for monitoring two trader defined moving averages. The indicator is designed to alert traders when two moving averages crossover. The trader has a wide range of control over how the MA Crossover alerts are generated which is detailed below. Key Features Automatic display of trader defined fast and slow movin
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Barend Van Vugt
213
Barend Van Vugt 2020.10.21 19:14 
 

I am very Happy with it the grid is perfect and also with standard settings ;-)

Peter
1093
Peter 2018.07.13 14:08 
 

Great indicator for mean reversion! Indicator works flawless without any issues.

Reply to review
Version 1.1 2018.08.16
Added the following additional external input parameters :

Moving Average Calculation Method - SMA, EMA, Smoothed and Linear Weighted
+2 STD Price Alert - true/false
+1 STD Price Alert - true/false
Mean Price Alertr - true/false
-1 STD Price Alert - true/false
-2 STD Price Alert - true/false
Alert Channel Width around lines - pips/points
Time Between Alert - seconds