🟪Machine Learning Reversion Bands

Rainbow Trends' Machine Learning Reversion Bands is one of our most profitable and popular Trading Tools to date. No other tool on the market capture Support and Resistance Levels like this tool.

For those who prefer video tutorials, this breaks down the Machine Learning Reversion Bands:

Introduction

The Machine Learning Reversion Bands Tool utilizes an algorithm that learns from the chart’s ENTIRE history. A trader can scan through years worth of data or let this tool do it for you. This upgrade retains the original red and green Reversion Bands, but it also includes a second set of bands that learn and adapt to the chart’s volatility over time. This gives the trader four levels to trade from. The first two levels are the traditional support/resistance red/green Reversion Bands. The second levels are the orange/blue Machine Learning Bands. While the red/green bands are great at identifying traditional levels, the orange/blue bands allow the trader to know the EXACT levels that have “never been done before”. This is exceptionally valuable to help you find key entries and exits when trading more volatile assets.

Support Versus Resistance

This tool tracks four levels of Support/Resistance:

Green and Red Bands - Standard Resistance Band

These band gives you the normal reversion point for most assets where Whales typically hit exhaustion points and reverse the trend.

Cyan and Orange Bands - Machine Learning Reversion Band

These bands utilize actual Machine Learning to learn every asset that a Trader is charting. A Trader can study, research and measure every candle that has ever printed for every chart, or they can use the ML algorithms in this tool to do it for them. The Cyan/Orange Band algorithm studies the asset by looking back at every single candle that is available on the chart (as far as you can scroll left). If there is a decade worth of data, this algorithm will go back through that entire decade and learn the asset so it can project where these Cyan/Orange Bands should be overlayed.

In short, these ML Bands give Traders insight into where the ABSOLUTE walls are on a trend. Whales are only able to touch these Cyan and Orange Bands if they are currently moving price into levels of strength/weakness that have never been seen before. Each time the Whales manage to push trends to these Orange/Cyan levels, the tool increases its settings from the price action and never forgets them.

An example of the Cyan Bands learning DOGE Coin:

Another example of the Cyan Bands learning from additional extreme bullish price action:

An example of the Orange Bands learning the EOS Chart:

A second example of the Orange Bands learning from a Ford Chart:

Back-Test Results

Tron - H4 - $TRXUSDT - December 2024

Nvidia - H4 - $NVDA - March 2020

Tesla - H4 - $TSLA - April 2022

Bitcoin - H4 - $BTCUSDT - December 2022

Solana- H4 - $SOLUSDT - June 2024

Settings and Tuning

Reversion Alert Markers are utilized by our Traders to visualize and automate trades. These markers allow for Traders to automate every single time one prints inside one of the Reversion Bands.

These Markers can be toggled on and off in the settings of the tool:

The Markers can also be customized to customized text/emojis per the Trader's preferences:

The Bands can also be adjusted manually to fine tune the chart specifically to the asset that the Trader is buying/selling:

Smoothness Adjuster - Adjusts how sensitive the Bands are to price action.

Top Bands Height Adjuster - Adjusts the vertical height of the Upper Bands

Bottom Bands Height Adjuster - Adjusts the vertical height of the Lower Bands

Example of the Smoothness Adjuster being increased to +10 and the results of it smoothening out the Reversion Bands:

Example of decreasing the Bands Height Adjusters to squeeze the Reversion Bands closer to current Price Action:

The Bands themselves can also be adjusted visually to suit each Trader's preference.

The Borders of the Reversion Bands as well as the Bands themselves can be adjusted to be brighter or darker by adjusting these two settings:

Band Transparency Adjuster - Adjusts the opacity of the Reversion Bands

Border Transparency Adjuster - Adjusts the opacity/brightness of the Borders that are drawn around the bands.

Example of the Reversion Bands and the Borders being set to be extremely bright:

Example of the Reversion Bands to be more more transparent:

The colors of the Bands and Borders can also be adjusted to meet the preferences of the Trader. Below you can see each Band color being adjusted:

Candle Filtering is an advanced tuning option that Traders can use to enable the Reversion Alert Markers to only trigger during extreme price action movements.

Below is an example of Reversion Alert Markers operating in the default setting. By default, every candle color will trigger an Alert Marker when inside the Reversion Bands.:

With this option enabled, you can see the exact same chart with Alert Markers only printing on the Pink and White Candles:

For Traders that utilize custom tuning on the Main Indicator, the Reversion Bands Tool also has settings adjustments that can be made to bring the Pink/White Candle Filtering in line to the Candle Settings they use on the Main Indicator:

Below is an example of the Pink/White Candle filtering being enabled, but the Main Indicator Tuning NOT being in synch. Example of what not to do:

If you are still having issues or have questions, please feel free to reach out to us at [e-mail] or message us in the Rainbow Trends Discord.