Volatility-Scaled Grid with Hull Baseline and Mean-Reversion Signals

Summary

This indicator builds a symmetric price ladder around a Hull moving average, spacing each rail by a multiple of average true range. As volatility changes, the ladder expands or contracts, making deviations comparable across instruments and timeframes. A proximity filter temporarily hides rails near the bar’s open, close, and representative prices, while a companion oscillator expresses the close’s distance from the baseline in volatility steps.

Signals mark closes returning across a grid rail toward the baseline; they are mean-reversion cues rather than breakout entries. Closed-bar confirmation, a minimum gap between signals, and selection of the outermost crossed rail reduce duplicate or ambiguous marks. The article explains how to read the grid and dashboard, but provides no performance testing. It warns that re-entry marks can fail in strong trends and that unusually large deviations may be precisely where mean reversion is least dependable. The baseline and ATR also require a warm-up period before readings are meaningful.

Key ideas

• The grid centers on a Hull moving average and spaces rails using an ATR-based volatility step.
• The oscillator reports the close’s distance from the baseline in units of the same step used by the price ladder.
• Signals mark a close returning across a rail toward the baseline, not a continuation breakout.
• Closed-bar confirmation and minimum spacing filter signal marks.
• Re-entry signals may fail in strong trends, and extreme deviations do not guarantee reversal.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.