FTSE All Share ATR Mean Reversion Scanner
Educational Tool for Learning ATR Distance Analysis
What is ATR Mean Reversion?
Learning Purpose: This tool demonstrates how to identify stocks that have moved unusually far from their average price using Average True Range (ATR) as a measurement unit. When stocks stretch beyond normal volatility ranges, they often "revert to the mean" - returning closer to their average price.
Why This Matters: Rather than guessing when a stock might reverse direction, ATR analysis provides a systematic way to identify when prices have reached statistically significant extremes. This helps you understand market structure and avoid chasing stocks that have already moved too far.
Key Concept: We measure how far each stock's current price is from its 21-day moving average, expressed in units of 14-day ATR. A stock trading 3.0X ATR away from its average is much more "stretched" than one trading 1.0X away.
How This Scanner Works
- Data Source: Daily FTSE All Share price data converted to weekly calculations
- 21 EMA: 21-period Exponential Moving Average acts as our "mean" reference point
- 14 ATR: 14-period Average True Range measures typical volatility
- Distance Calculation: |Current Price - 21 EMA| ÷ 14 ATR = ATR Distance
- Categories: 3.0X+ (Highest), 2.5-2.9X (Medium), 2.0-2.4X (Lower) ATR distances
- Educational Focus: Study these patterns to understand mean reversion concepts
Current Market ATR Analysis
FTSE All Share stocks showing significant distance from their 21 EMA measured in 14-period ATR units
This Website Content is NOT Financial Advice
Educational Purpose Only: This tool displays FTSE All Share stocks showing specific ATR mean reversion patterns for educational study only. This is NOT a recommendation system. All patterns require your own thorough analysis and understanding of market risks.