Overview:The Median Deviation Bands indicator is an advanced volatility-based tool designed to help traders identify price trends, market reversals, and potential trading opportunities. By using a percentile-based median baseline combined with standard deviation bands, this indicator provides a dynamic framework for analyzing price movements and assessing market volatility.
The Median Deviation Bands indicator provides a unique approach to market analysis by integrating percentile-based median price levels with standard deviation-based volatility bands. This combination helps traders understand price behavior in relation to historical volatility, making it a valuable tool for both trend-following and mean-reversion strategies.
Example:![Median Deviation Bands [QuantumResearch] in TradingView - Pine Script Indicators_topic=4602](https://www.forex.zone/dlattach/topic=4602.0;attach=79553;image "Median Deviation Bands [QuantumResearch] in TradingView - Pine Script Indicators_topic=4602")
User Inputs:- Baseline Length: Default set to 50, determines the lookback period for median calculation.
- Source Price: Selectable input price for calculations (default: close).
- Band Visibility: Traders can toggle individual deviation bands on or off to match their preferences.
- Trend Markers: Option to enable or disable up/down trend arrows.
- Color Modes: Choose from eight color schemes to customize the indicator?s appearance.
Trading Applications:- Volatility-Based Trading: Price movement within and outside the bands helps traders gauge volatility and market conditions.
- Trend Following: The baseline and deviation bands help confirm ongoing trends.
- Mean Reversion Strategies: Traders can look for price reactions at extreme bands (?3 standard deviations).
Availability:Linkback: https://www.forex.zone/tradingview-pine-script-indicators/41/median-deviation-bands-quantumresearch/4602/
