EDMR Index (Event Driven Mean Reversion Index)

EDMR Index is a market context and exhaustion indicator designed to identify short term instability, stretch, and mean reversion risk in fast intraday markets.
Rather than generating trade signals, EDMR provides a real time regime framework that helps traders understand when price action is statistically favorable and when it is not.

This is not a buy / sell indicator.
It is a context engine built to integrate seamlessly with existing strategies.

Key Features

• Composite 0–100 exhaustion index
  
• Measures:
  - Price stretch from equilibrium
  - Recency of extreme conditions
  - Momentum deceleration
  
• Regime-based background visualization:
  - Neutral
  - Developing
  - Elevated
  - Extreme
  
• Thin, non-intrusive EDMR line for precise reading
  
• Volume exhaustion markers highlighting abnormal participation
  
• Color-coded status-line value for instant regime awareness
  
• Fully protected, invite-only script
  

Why Event-Driven Context Matters
Most indicators react after conditions change.
EDMR focuses on market state, not signals — highlighting when price action is becoming unstable or statistically stretched before risk escalates.

This allows traders to:
*Avoid entries during high-risk exhaustion regimes
*Better time mean-reversion setups
*Scale aggression up or down based on context
*Stay out of overextended or unstable conditions


Intended Use
*Intraday trade filtering
*Mean-reversion context
*Momentum exhaustion awareness
*Risk modulation for discretionary strategies


Optimized for lower timeframes (1–3 minute charts).
On higher timeframes, regimes will naturally remain elevated more often. This is expected behavior with the current parameters set. Changing of parameters are available in the settings menu and individual settings may work for you on higher timeframes.

Who This Is For
✔ Traders who already have defined entries
✔ Active intraday traders and scalpers
✔ Traders who value context over signals

✖ Not a buy/sell signal
✖ Not a standalone strategy
✖ Not designed for higher-timeframe swing trading out of the box

Disclaimer
This indicator is provided for educational and informational purposes only.
It does not constitute financial advice or guarantee performance.
Trading involves risk.

EDMR Index on SPY (2-minute).Visualizes exhaustion, compression, and reversion context during high-liquidity market conditions:


EDMR applied to BTCUSD (2-minute). Designed to respond to event-driven volatility across asset classes:


Consistent behavior across index ETFs. EDMR highlights mean-reversion pressure without generating trade signals:


High-beta equity example (NVDA, 2-minute). EDMR adapts to rapid volatility expansion and contraction: