The Equilibrium Indicator for Trading.

Coding the Reversion to Equilibrium in Python.

Markets swing between extremes and move in cyclical phases. Sometimes, they are a bit overbought due to a superior optimistic feeling and other times they are oversold due to looming fear. The self-similarity and fractal natures of the financial markets tell us that this goes for all the time frames. In this article, an indicator similar to the MACD is …