lisaanwood

Really Great Info!! Thanks for sharing this valuable information. I would like to share some more info that I gathered from by trading experience that could help other buyers as well. Mean reversion is based on the assumption that price will always return (revert) to a mean (Moving Average). Mean reversion trading is built around the idea that high and low prices are temporary and a price will tend to go back to its average over time. So a mean reversion trader will establish an average they think the price will revert towards, and levels they will trade when the price deviates far enough. This is similar to what market makers do in establishing a mid and standing ready to buy below that price and sell above it. Here is an attachment showing 'Mean Reversion' in pictorial way.