Mean Reversion Strategy
Definition
Mean Reversion Strategy is a technical indicator used to measure overbought/oversold conditions.
Calculation
Formula: SMA ± 2*StdDev. Computed on each candle close.
Signal Interpretation
Common signals: breakout from band = volatility expansion.
FreqTrade Implementation
Add to populate_indicators() method using ta.MEAN(dataframe) from talib wrapper.
Note: This documentation reflects testing on Ubuntu 22.04 with Python 3.10. Adjust paths and commands for your environment.
Further Reading
- FreqTrade official documentation:
freqtrade.io/en/stable - CCXT exchange library:
github.com/ccxt/ccxt - TA-Lib indicators:
ta-lib.org