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The answer was mean reversion. This was the first time in a long time that we saw a 2 1/2 standard deviation from the mean, and that was a clear signal that I would mean revert with a very high probability.

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Kayzee

There needs to be some basic understanding of normal distribution curves to understand this concept though, and possibly hence the question asked

QuantBeliever

Over how many time intervals do you calculate the mean? And is it also based on the 4h chart or an a different setting?

Chewie

You Da Best. I just watch and learn

Bernese Mountain Dog

I think James uses a combination of RSI and MACD or has been modifed for his newer tools. From a very old video he did years ago this was his staple. When RSI mean reverts you confirm with MACD

Sol Hodlman

MMs use mean reversion to always recover what they have left behind. They always come back for it.

Sonofsatoshi1

Where can you get IA mean reversion indicator? Is it under another name on the website?

George Gilbert

My red and green bands aren't as wide as James's on here. what setting would make that adjustment?