Triple Oversold Reversal

The Triple Oversold Reversal is QSA's highest-conviction mean reversion signal. It fires only when three independent indicators simultaneously confirm extreme oversold conditions: RSI below 20, price below the lower Bollinger Band, AND price below the lower Keltner Channel. When all three agree, it represents a statistically rare confluence that has strong historical reversal probability.

This scanner combines the old Keltner Mean Reversion and Oversold Bounce scanners into a single, stricter signal. The triple confirmation requirement dramatically reduces false positives compared to using any one indicator alone.

Each of the three components has independent origins: RSI from J. Welles Wilder (1978), Bollinger Bands from John Bollinger (1983), and Keltner Channels from Chester Keltner's work popularized in the 1960s. The combination of all three — specifically requiring price to be below all three lower bands simultaneously — was a synthesis developed by algorithmic traders looking for high-precision reversal filters.

The theoretical basis is that each indicator captures a different dimension of oversold condition: RSI measures momentum exhaustion, Bollinger Bands measure volatility-relative extremity, and Keltner Channels measure ATR-relative extremity. When all three are triggered, the probability of a sustained continuation lower drops sharply in historical backtests of crypto perpetuals.