KRSE Market Indicator v1.0

User Manual – Production Release

Release Date: February 1, 2026
Version: 1.0 (Production)
Category: Mean Reversion & Stretch Detection
Platform: MetaTrader 5
Developer: GomerAI LLC

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Overview

The Kagi or KRSE (Key Reversal Signal Engine) detects mean reversion opportunities when price becomes overextended (stretched) from its mean, then shows reversal pattern. Ideal for catching bounces at extremes.

Signals: +1 (BUY from oversold), -1 (SELL from overbought), 0 (NO SIGNAL)

Visual Display

Separate window with colored signal line:

Gray: No signal (neutral market)
Blue: BUY signal (bullish reversal detected)
Red: SELL signal (bearish reversal detected)
Stretch Level (0-100): Shows intensity of overextension

How It Works

Setup Detection (Stretch):

Bollinger Bands (default 20, 2.0): Price beyond bands = stretched
ATR Stretch: Current ATR vs average ATR (volatility spike)
Stretch Level combines both into 0-100 score

Trigger Confirmation (Key Reversal):

Gap candle pattern (open vs previous close)
Reversal close (close back toward mean)
Pattern must occur during stretch condition

Gate Filters:

ADX check: Avoid trending markets (default 25 max)
EMA slope: Confirm mean reversion conditions

Key Parameters

Stretch Detection:

InpBB_Period: 20 (Bollinger period)
InpBB_Deviation: 2.0 (standard deviations)
InpATR_Period: 14 (ATR calculation)
InpATR_Stretch_Threshold: 1.5 (ATR multiple)

Reversal Confirmation:

InpKeyReversal_MinGap: 0.2% (min gap size)
InpKeyReversal_MinClose: 0.3% (min reversal close)

Gate Filters:

InpADX_Period: 14 (ADX calculation)
InpADX_MaxTrend: 25 (max ADX, avoid trending)
InpEMA_Period: 50 (EMA for slope check)

Signal Interpretation

BUY Signal (Blue, +1):

Price stretched below lower Bollinger Band
ATR spike (panic selling)
Gap down, but closes higher (reversal pattern)
ADX low (not strong downtrend)
Mean reversion setup to upside

SELL Signal (Red, -1):

Price stretched above upper Bollinger Band
ATR spike (euphoria buying)
Gap up, but closes lower (reversal pattern)
ADX low (not strong uptrend)
Mean reversion setup to downside

Stretch Level (0-100):

0-30: Normal range, no stretch
30-70: Moderate stretch
70-100: Extreme stretch (best reversals)

Best Practices

Trade extremes: Best signals at Stretch Level > 70
Avoid trends: Don’t fade strong trends (watch ADX)
Quick in/out: Mean reversion trades = quick scalps
Use stops: Price can stay stretched (tight stops required)
Combine with support/resistance: Reversal + level = higher probability

EA Integration

Buffer 0: ReversalSignal (-1/0/+1) [EA READS]
Buffer 2: StretchLevel (0-100) [EA READS]

Quick Reference

Stretch Level	Signal	Meaning
0-30	Any	Weak (avoid)
30-70	+1 or -1	Moderate setup
70-100	+1 or -1	Strong setup (best)

Support: https://gomerai.com/support