Mean Reversion Composite ScoreMean reversion

Timeframe M1 · unit norm

What it measures

A weighted composite of four stretch indicators - the close Z-score vs SMA-20 (35%), the VWAP deviation in sigma (30%), the RSI extremity score (20%), and the Bollinger Band stretch (15%). It synthesizes multiple reversion signals into a single signed score representing the overall extension of the current price.

How Janira reads it (bullish vs bearish)

Values near 0 indicate that all four components agree price is close to its references. A value above +0.6 means the majority of the stretch indicators are reading positive (upward extension), suggesting above-average mean-reversion tension from the upside. A value below -0.6 means the composite registers a downward extension. The score is soft-capped at ±2 to limit outlier influence.

In plain language

Instead of checking four different rubber bands separately, this indicator checks them all at once and gives you a single number. If most rubber bands are stretched upward, the number is positive and higher; if most are stretched downward, it is negative and lower.

Scenarios

More mean reversion indicators

Z-score Close vs SMA-20VWAP Deviation in SigmaDistance to SMA-20 in Std DeviationsPercent Below 20-Bar Rolling HighPercent Above 20-Bar Rolling LowRSI Extremity Score (14)Bollinger Band Stretch (20, 2σ)50-Bar Range Position (Centered)

Janira computes Mean Reversion Composite Score deterministically from live price action, the same way for every reading - no discretion, no hidden weighting. This page explains the method; it is not a live reading and not advice.