GU Bands explained

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What GU Bands measures

A volatility-based envelope that measures the range around mid-price values to define inner and outer levels. Available in Long Term mode only.

How GU Bands readings are interpreted

The midline is the mean-reversion anchor. The inner levels define the normal range — price outside them is extended. The outer levels mark extremes where a pause or reversal toward the midline is likely.

Conventional GU Bands levels

Price at the inner level: extended relative to the midline
Price at outer level: extreme — high reversal probability
Price crossing midline: short-term directional shift

Indicators commonly read alongside GU Bands

RSI: Outer level touch + RSI extreme = strongest reversal setup
Supertrend: use for trend direction; GU Bands for entry timing within that trend

GU Bands in practice

In mean-reversion approaches, price at an outer level with RSI at an extreme is read as stretched, with the midline as the reference target
In a strong trend price can walk the outer level for extended periods, so a confirmed reversal candle is conventionally required before treating it as exhaustion

Testing ideas built on GU Bands

A reading of GU Bands can be written as an exact rule and checked against historical data — as a full strategy with entries, exits and costs, or as a single condition and what followed it:

How to backtest a trading strategy without code
Event analysis: what follows a market event

Plot it yourself. Add this indicator to a chart, change every parameter and watch the line move, then backtest how the rule would have behaved on historical data — free on the S&P 500 ETF, no card.

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This is reference material, not advice. It describes what each indicator measures and how its readings are conventionally interpreted. Nothing here is a recommendation to buy or sell anything, and no indicator predicts future prices. GU Analyser is an analytical tool — no money is ever traded here.