> For the complete documentation index, see [llms.txt](https://docs.candelacharts.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.candelacharts.com/investing/momentum-and-oscillators/mean-reversion-index/overview.md).

# Overview

<figure><img src="/files/c1l4EQzgy0pRfovCjM05" alt=""><figcaption></figcaption></figure>

The Mean Reversion Index strips away the noise of absolute price movements and focuses entirely on the "rubber band effect." It tracks how stretched the current price is relative to a baseline moving average (e.g., the 200-day SMA) compared to its historical behavior over the last several years.

{% content-ref url="/pages/QGR5Xg3okZormh4ZKXz0" %}
[Features](/investing/momentum-and-oscillators/mean-reversion-index/features.md)
{% endcontent-ref %}

{% content-ref url="/pages/28lo1EznTuQzDtTCByRM" %}
[Usage](/investing/momentum-and-oscillators/mean-reversion-index/usage.md)
{% endcontent-ref %}

{% content-ref url="/pages/mmrYkrNY5ggibZP6zF1j" %}
[Confluences](/investing/momentum-and-oscillators/mean-reversion-index/confluences.md)
{% endcontent-ref %}

{% content-ref url="/pages/xUAXgqKAZqj6Sxp85lfZ" %}
[FAQs](/investing/momentum-and-oscillators/mean-reversion-index/faqs.md)
{% endcontent-ref %}

When the oscillator spikes into the upper bounds, the asset is historically overextended to the upside, warning of a potential mean-reverting correction. Conversely, when the oscillator plunges into the lower bounds, the asset is experiencing extreme downside capitulation. These lower extremes often mark generational bottoms, which the indicator highlights dynamically as structural "Buy Zones."


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.candelacharts.com/investing/momentum-and-oscillators/mean-reversion-index/overview.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.