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Meanreversion

Pair Trading - Mean Reversion on BTCUSDTPERP/ETHUSDTPERPPrice might be crossing under the fast MA (yellow) and revert towards the slow MA (purple), the mean. For this trade, you can do a 1.3-to-1 reward to risk setup - 3% target profit, 2.2% stop loss. Pair Trading (from Wiki): A pairs trade or pair trading is a market neutral trading strategy enabling traders to profit from virtually any market conditions: uptrend, downtrend, or sideways movement. This strategy is categorized as a statistical arbitrage and convergence trading strategy.
Short
by kh_thetrader
Pair Trading - Mean Reversion on BCHUSDTPERP/LTCUSDTPERPPrice might be crossing over the fast MA (yellow) and revert towards the slow MA (purple), the mean. For this trade, you can do a 1.5-to-1 reward to risk setup - 9% target profit, 6% stop loss. Pair Trading (from Wiki): A pairs trade or pair trading is a market neutral trading strategy enabling traders to profit from virtually any market conditions: uptrend, downtrend, or sideways movement. This strategy is categorized as a statistical arbitrage and convergence trading strategy.
Long
by kh_thetrader
Pair Trading - Quick Scalp on BCHUSDTPERP/LTCUSDTPERPSecond attempt for the price to cross the fast MA (yellow) and revert towards the slow MA (purple), the mean. For this trade, you can do a ~2.4% 1-to-1 reward to risk setup. Pair Trading (from Wiki): A pairs trade or pair trading is a market neutral trading strategy enabling traders to profit from virtually any market conditions: uptrend, downtrend, or sideways movement. This strategy is categorized as a statistical arbitrage and convergence trading strategy.
by kh_thetrader
LINK Macro Channel| Overthrow| 4.23 Fib Target| Mean Reversion Evening traders, Today’s analysis – LINKBTC – price in discovery mode breaking above resistance, a mean reversion is probable. Points to consider, - Price discovery - Over throw (Resistance) - Mean confluence ( 2.618) - Oscillators overbought - Volume increasing (Volume climax needed) LINKBTC’s trend is in a channel, clear respect of support and resistances. This gives us a bias of a mean reversion to the trend. The channel resistance will establish an overthrow if price respects the 4.23 Fibonacci extension, common in trapping long buyers. An impulse sell is likely to the mean (support) which is in confluence with the 2.618 – LINKBTC may establish a range here. Oscillators are both overextended, indication that the market will be due for a pull back at some point. Volume is increasing; a volume climax is needed to mark a temporary top, which is logically most probable at the test of the 4.23 Fibonacci. Overall, in my opinion, LINKBTC is likely to respect the 4.23 before a reversion, this will establish an overthrow. Top fishing plays are valid here with defined risk. What are your thoughts? Thank you for follow my work! And remember, “Trading mastery is a state of complete acceptance of probability, not a state of fight it.” ― Yvan Byeajee
Short
by AzizKhanZamani
2
Record Highs in the NDX vs SPXWith this pair up the last 9/10 months and the tech bubble being up 10 months in a row before blowing the top... It is perhaps time to start thinking about SPX outperforming the NDX. This means it is a directionless position. How this is played out is short NDX and long SPX in equal weighting. i.e a profitable position will be when the SPX goes up more than the NDX or if the NDX drops more than the SPX. This may take a few months to pan out, however even *IF* this is a paradigm shift there will be a pullback. Remember history never repeats, it only rhymes.
TVC:NDQShort
by GlobalMarketSignals
3
LONG - Dow Jones Industrial Average (DJI)Hi there! This idea/trade is pretty simple and it comes up few and far between. It is strictly based on price and nothing else. Human nature never changes and it's interesting that the two times this has happened in the past were also during "panics". These trades typically last a few months so just keep that in mind. The details are below. All the best, Andre CHART INTERVAL 2W (2 Weeks) THE SIGNAL When the close is more than -3 standard deviations below the 20 period linear regression on this time frame, it indicates an amazing long opportunity. The exit is a 2W close above a 10 period simple moving average. THE RESULTS This has only ever happened twice: First Time Entry: November 11 1929 @ the open (220.39) Draw down: -11.36% Run up: +24.78% Exit: February 2 1930 @ the open (270.54 +22.76%) Second Time Entry: October 26 1987 @ the open (1839) Draw down: -5.72% Run up: +13.00% Exit: February 29 1988 @ the open (2032.20 +10.51%) THE RISK As you can see from the trade draw downs the maximum is -11.36%, of course it is absolutely possible to exceed that. **Important: Remember that leverage increases the draw down number... i.e -11.36% with 3x leverage is -34.08%***
DJ:DJILong
by GlobalMarketSignals
1
SARS-CoV-2 Depression: USA Mean Reversion at Full Moon!We have reached the end of the Ascending Wedge (purple) which began during the middle of the Coronavirus (SARS-CoV-2) Pandemic. US sentiment is largely negative due to civil unrest, political corruption, and a 20% unemployment rate. The RSI indicator notes that the market has become overbought. Similarly, the MACD is giving us a sell signal. Shortly before the market closes, at 3:12 PM on June 5, electromagnetic fields that are associated with the earth's magnetotail will be in full affect due to the Strawberry Moon. Please watch the S&P 500, Nasdaq 100, and US 30!
CME_MINI:NQ1!Short
by ThrivingProject
2
Long Regional Banks $FISI $WSBC $FLIC $SSB (Cheap and Oversold)Hey traders, I'm buying 4 regional bank stocks today as I think they're cheap and so do the company insiders who have been buying shares like many regional bank insiders have been doing these past 2 months. The technicals have also aligned for a good entry point here imo as we're currently at the bottom of the range and oversold versus the market and financial sector in general, I'm trading off the weekly charts looking for mean reversion so these trades will need approximately 1-3 months to play out but stand to make potential 30-50% gains with less downside imo. Follow along as i'll update these trades. Jared. *Disclaimer: This is not financial advice, I'm just sharing my own trades, opinions and analysis, please trade at your own risk.
SLong
by Click-Capital
HEXO. P-Modeling Pt A. The Cannabis Strains of CajunWelcome to the Green Gold Rush Scrub a Dubs. These are Opportunities of a Lifetime.. Be apart of the Cannabis Revolution! Smoke em, if you got em.. Hexo Corp, formerly Hydropothecary Corp, is a Canada-based company that creates and distributes products to serve the Canadian cannabis market. The Company operates with an approximately 300,000 square feet of production capacity. Equalization and steady growth is inevitable for Hexo Corp until USA legalization. This range would potentially mark it's All-Time Low. ($1.16-$1.27) Trade Set Up: 2500 shares of HEXO bought at $1.27 TP 1: $4.00 TP 2: $8.25 TP 3: $11.25 Long Term Hold till April 2021. All-Time High prediction for HEXO : $11.25 by Q1 of 2021. USA legalizes Cannabis Q1 of 2021. ( Bernie Sanders by Executive Order. ) Massive competition for HEXO = HEXO price drops significantly from ATH. Be a Cajun.. Be one with the magical leaf. Be a 420. Thanks for Pondering the Unknown with Me, Glitch420
HLong
by Glitch420
2
XBTUSD Large Symmetrical Triangle AnalysisLarge symmetrical triangle (points ABCD), with a smaller triangle within it (in white). Fibonacci extension pulled from triangle points ABC. The bottom side of white triangle (Yellow solid ascending line) is the historical linear regression mean adjusted to highest Pearson's R value. PA moved very close to this recently, but i'm not convinced that it will not return and bounce (or break) here again. I would love to see PA move in the upper white triangle and then break up, but it is totally possible that the mean support breaks and we see a drop to the lower end of that larger triangle. If we see PA revert and break below the mean, I will be looking for a solid bounce around ~7500 level to further validate triangle. The white rectangle is a range between two pulled historical fib extension levels. Breakout and support within this range will be significant in supporting an upward break. Current PA is within linear regression channel (dashed purple and yellow) adjusted to highest Pearson's R, with upper SD= 2, and lower SD= -2.272. Watching this channel closely.
KRAKEN:BTCUSD
by spreck