Bitcoin / TetherUS
Short

How to Capture Reversals/Breakouts with MAD Indicator

108
BTC/USDT 15M – Market Anomaly Detector (MAD) Captures Reversals & Breakouts



Description:

On this BTC/USDT 15-minute chart, the Market Anomaly Detector (MAD) is actively highlighting high-probability market turning points and anomaly zones.

Key Observations from the Chart:

1. Green & Red Zones = Expected Price Range
• Green Line (Upper Band): Expected top of the range.
• Red Line (Lower Band): Expected bottom of the range.
• Price usually travels green → red → green, forming a natural oscillation.

2. Buy/Sell Signals = Breakout + Reversal Detection
• Buy Signal: Triggered when price closes above the green line or recovers from below the red line.
• Sell Signal: Triggered when price closes below the red line or rejects from the green line.
• This reverse psychology logic helps catch false breakouts and stop-loss hunts.

3. Performance on This Chart:
• Signals aligned with key reversals during the sideways-to-downtrend transition.
• The strong downtrend in the second half of the chart shows multiple accurate sell signals, confirming trend continuation.
• Sideways movements had minimal false signals due to cooldown + volume filter.

4. Unique Advantage (USP):
• Statistical approach using Z-Score & Standard Deviation.
• Multi-filter confirmation with RSI, volume, and higher timeframe trend.
• Visually clear anomaly zones:
• Green background = Bullish anomaly
• Red background = Bearish anomaly
• Gray background = Neutral range

Takeaway:
MAD helps traders anticipate anomalies rather than react late, offering high-probability trade entries and reversals in trending and volatile conditions.

Disclaimer

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