ATLAS Reversion Bands v2 [EMA % Spread]

🧠 About the ATLAS Reversion Bands v2 [% Spread]

I created this indicator to answer a simple question:

"When is price extended too far from trend, and likely to revert?"

The ATLAS Reversion Bands measure the percentage spread between a fast and slow EMA (default 25/200) and track how far that spread moves from its historical average using z-score and standard deviation bands—essentially building a Bollinger Band system on top of EMA distance.

Instead of relying on traditional oscillators like RSI or MACD, this tool is purely math-driven and tailored for spotting overextensions across any asset.

🔍 What It Does

Tracks the normalized spread between EMA 25 and EMA 200

Highlights statistically rare zones using ±2 and ±3 standard deviation bands

Plots BUY/SELL triangle markers only on first entry into extreme zones

Helps identify mean reversion opportunities (deep pullbacks or FOMO tops)

📈 How to Use It

Wait for the spread to hit or exceed ±2.5 or ±3 standard deviations

Look for confirmation via price structure, candles, or volume

Best used on spot or perp markets with healthy liquidity

Ideal for swing trading or narrative-based rotational setups

🕐 Recommended Timeframes

1H, 4H, and 1D are optimal

Use MTF mode to apply daily logic on lower timeframes (e.g., see 1D exhaustion while trading 4H)

Works across:
✅ BTC, ETH, Majors
✅ Meme coins (better on 1H/4H)
✅ Market indexes (TOTAL2, BTC.D, etc.)

📌 Pro Tips

Raise the Z-score alert threshold for stricter signals (e.g., 3.0 for only the wildest extensions)

Use with other confluence tools (like S/R, candles, or RSI)

Not designed for chasing trends — this is a fade-the-hype, buy-the-blood kind of tool