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Mean reversion strategies

Intermediate·8 min read·Premium lesson

Mean reversion assumes price that moves too far from its average tends to come back. It's the opposite of trend following: it wins often, but loses big when a stretch turns into a trend.

The full lesson covers measuring "stretched", the right market conditions, and strict risk rules.

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The rest of this lesson includes the exact rules, diagrams, live chart examples, a checklist and a practice drill. Premium members get all 101 lessons.

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