Mean Reversion Calculator
Enter current price, moving average, and ATR or standard deviation to calculate deviation bands, Z-score distance from the mean, optimal entry zone, profit target, and stop loss for mean reversion setups.
How This Tool Works
Mean reversion bands define statistically significant price extremes. Entry signals are generated when price deviates beyond the band multiplier × ATR from the mean.
Upper Band = Mean + (Multiplier × ATR)
Lower Band = Mean − (Multiplier × ATR)
Z-Score = (Price − Mean) ÷ ATR
For a long trade: Entry = Lower Band, Target = Mean (reversion), Stop = Lower Band − 1×ATR. For a short: Entry = Upper Band, Target = Mean, Stop = Upper Band + 1×ATR. The R:R ratio is calculated automatically — look for setups with R:R ≥ 1.5. A Z-score beyond ±2σ signals a statistically rare price extreme.
Learn the Concepts
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