|Mean reversion and Breakout strategy combo|
Below is a snapshot of some trading research I have been doing.
By no means this is a trade-able strategy as is, but it does show two of the basic trading principles:
- Mean reversion
This is the principle that price tends to return to it’s mean after it has moved away from it.
This is the principle that price tends to break away once it has moved more then a certain percentage usually after a period of consolidation.