Rebound Sigma Pro - Strategy

Overview

Rebound Sigma Pro is a mean-reversion indicator that detects statistically oversold conditions in trending markets.
It helps traders identify potential short-term rebounds based on momentum exhaustion and volatility-adjusted entry zones.

Concept

The indicator combines two quantitative components:

• Short-term momentum to detect short-term exhaustion
  
• Trend filter to ensure setups align with the long-term direction
  

When a stock in an uptrend becomes temporarily oversold, a limit-entry signal is plotted.
The trade is then tracked until short-term conditions normalize or a time-based exit occurs.

Visual Signals

Green Triangle: Suggests placing a limit order for the next session
Green Circle: Confirms entry was filled
Red Triangle: Signals an exit for the next session’s open
Orange Background: Pending order
Green Background: Position active
Red Background: Exit phase
Yellow Line: Entry reference price

User Inputs

• Limit Entry (% below previous close) – Default 1 %
  
• Use Limit Entry – Switch between limit or market entries
  
• Enable Time Exit – Optional holding-period constraint
  
• Maximum Holding Days
  

All other internal parameters (momentum length, filters) are pre-configured.

Alerts

• Limit Order Signal: New setup detected
  
• Entry Confirmed: Order filled
  
• Exit Signal: Exit expected next day
  

Usage

• Designed for liquid equities and ETFs
  
• Works best in confirmed uptrends
  
• Backtesting encouraged to adapt parameters per symbol and timeframe
  

Notes

• Not an automated strategy; manual order execution required
  
• Past behavior does not imply future performance
  
• Always apply sound position sizing and risk management
  

Disclaimer

This indicator is provided for educational and analytical purposes only.
It does not constitute financial advice or performance assurance.