Mean Reversion
Updated
Statistically speaking, when the price shows two standard deviations in regards to the bollinger bands, it will spend less than 5% of it’s time there. When it gets 3 or more deviations, it will spend 1% or less of it’s time there. Note how BTC reacts when it deviates from the mean, tests the outside of the bands; and returns relatively quickly.
I believe this is what we will see once again here. Cheers
I believe this is what we will see once again here. Cheers
Note
And there we have it. The price has reverted to the mean within 19 hours. Let’s see how it reacts from here. Thanks for looking!Trade active
Still holding this long. Worked like a charm.
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