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Meanreversion

Mean-Reversion Swing Trading Strategy v1 A port of the TradeStation EasyLanguage code for a mean-revision strategy described at traders.com In “Mean-Reversion Swing Trading,” which appeared in the December 2016 issue of STOCKS & COMMODITIES, author Ken Calhoun describes a trading methodology where the trader attempts to enter an existing trend after there has been a pullback. He suggests looking for 50% pullbacks in strong trends and waiting for price to move back in the direction of the trend before entering the trade.
by sherwind
BTC Pitchfork Analysis: Attractive short-term buy area Price has greatly respected this pitchfork, and it has served as a useful guide. Here we see that the .5 - .618 area has served as a strong support and resistance zone in the past. As of writing, the 7,400 - 7,500$ area falls in this range and is where price becomes more likely to bounce and test old highs. In my opinion, target points from longs taken in this area should be extremely conservative, with 7,800$ serving as a maximum with profits taken along the way. Although a long becomes attractive in this price area, stop placement is tricky. Previous price action around the .5 - .618 area suggests that stops just below the .5 line are likely to be triggered with price only to reverse and test the .618 area, at the very least. The next attractive area to place a stop is beneath the line-of-best fit ( The red solid line on the chart; calculated via linear regression starting from the all-time-high) or the dotted trend line. However, placing a stop loss beneath these areas reduces the reward-to-risk ratio to unacceptable levels (less than 2:1). Price becomes more likely to bounce and test old levels as price approaches the line-of-best-fit and at the dotted trend line. Although the red circled area on the graph above highlights the first safe area to go long, it might be wise to cost average in. The long could be split up into three buys: At the .5 - .618 area of the pitchfork, the regression line from the all-time-high, and the dotted trend line. A reversal from the line-of-best fit or the trend line would likely allow price to rise to a break even point, as price decreases past this point without retests of prior levels is unlikely. :Note that the line-of-best fit on the chart above is dynamic and changes with time. You will have to use the regression tool in tradingview to be sure of where it currently resides.
COINBASE:BTCUSDLong
by TheChartmergeny
Very Lackluster Day for StocksThe momentum and volatility in stocks has subsided for the moment due to geopolitical risks, in particular political uncertainty in the US. This would be a good range trading day, if that's your thing. The Kovach Momentum indicators have basically flatlined and the Reversals indicator has pointed out some nice entry points (shown with green triangles) for mean reversion trades. The Kovach Momentum and Reversals indicators were critical for this analysis. For access to these indicators and my cryptocurrency package, please sign up at quantguy.net
CME_MINI:ES1!
by quantguy
Daily Mean Extension with Bearish Conf. on Lower TF's (GBPJPY)On the daily TF for the GBPJPY the bullish impulse has been stalling and we are now consolidating in an area well extended from the 200 SMA. On the 4HR, there has been several attempts from the bears to break below the 200 SMA and have held, but now we have had a big impulse down, through the 200 SMA with a bullish correction. This is more easily seen on the 1HR, but regardless a sell stop has been placed below the low of the bearish candle. (148.665 - a few pips) (A bearish MACD signal on the 1HR, CCI breaking below -100, etc. could also do instead of trading the breakout below the candle.) Partial TP at 147.029 as its been a significant level in the past, and it would be smart to trail the rest of the trade on its way back to the mean on the Daily.
Short
by LegendaryStick
USDNOK: Still range boundUSDNOK is giving a good chance to enter longs aiming for the Brexit key level above, which is now acting as a magnetic level, pulling price towards it. The recent drop bottomed and turned around, breaking back above the daily low of the Brexit day, which now serves as a good level to hide our stops and gives us an excuse to go long on dips, or at market if not in it. We also see that the yearly SMA (252 periods) sits right where the Brexit level does, so it's logical to observe 'mean reversion' here. This trade is a good one to have while holding oil longs too. Good luck, Ivan Labrie.
Long
by IvanLabrie
GBPCAD: Nice long setupSpread between GBPUSD and CADUSD is too wide, it'll be closed soon. We can see that this is a clear long. Let's use a safe and more conservative stop loss for now. Cheers! Check out my updated track record here: pastebin.com If interested in my real time whatsapp alerts and swing trading newsletter, or in personal tuition, contact me privately. I'm offering a considerable discount on a packaged course which includes access to my private trading signals list for a year. Cheers! Ivan Labrie Link to Tim West's chatroom: www.tradingview.com We discuss setups like this often there. Feel free to stop by and subscribe to his indicator pack. If you have any questions ask. Risk disclaimer: My analysis is provided as general market commentary and does not constitute investment advice. I will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Long
by IvanLabrie
2
USDCAD 1H Short: Reversion to MeanUSDCAD has been producing bullish moves, creating a possible uptrend on the Daily and 4H TF's. I want to take advantage of a the reversion to mean trade before buying this pair. A conservative TP can be placed at the completion of AB=CD for the correction. An unhit weekly pivot sits below price and is confluent with the 200 daily EMA for a possible T2. SL is placed tightly above recent highs as breaking this level will put me in the bullish camp.
Long
by glennmercer
Trade weighted GBP index: Pullback startingIt appears like we can take mean reversion trades in GBP pairs. Find the most overextended currencies (JPY, NZD, AUD), the ones that have outperformed the most against the dollar, and fade them by going long GBP against them. Risk 1 average range on each, and aim for 5 average ranges up. This more or less gets you to the Brexit Key level in the daily, which would be the 24th's close. You can wait for the index to be above the 3 day range here to be safe, or just enter at market now if more aggressive. Credit for the trade weighted GBP chart goes to @Rocketman, who expanded on my average index chart work recently and posted his. See related ideas. Good luck! Check out my updated track record here: pastebin.com If interested in my real time whatsapp alerts and swing trading newsletter, or in personal tuition, contact me privately. I'm offering a considerable discount on a packaged course which includes access to my private trading signals list for a year. Cheers! Ivan Labrie Link to Tim West's chatroom: www.tradingview.com We discuss setups like this often there. Feel free to stop by and subscribe to his indicator pack. If you have any questions ask. Risk disclaimer: My analysis is provided as general market commentary and does not constitute investment advice. I will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance1.43% on such information.
Long
by IvanLabrie
2
DEO, NYSE due for meanreversion LONGDiageo Plc had a nice gap down 2 January that moved the stock into oversold territory based on Quant based approach that I have used for a very long time. I have traded US stocks under certain criteria with live recommendations since last January 2014 and until late autumn with fantastic results that I will publish here shortly. The approach is simple and based on testing from both ETFs and especially SPY back many years to get the quant basis for this setups. I will also publish these results shortly. Today this stock is one of the promising candidates. I recommend going long on the stock primarily on the close we had on 2 january. But often you will get even better setups going in the following day. You can either enter market (regardless if price gaps up or down or opens at Fridays close. I have tracked the results with best results going long the following day of the signal on daily setup with either enter at yesterdays close or better or preferably at a limit 1% below the setup bar. Stop and target is dynamic. That means I have both stoploss and target at CLOSE above 5 MA on daily. If you would like a faster partial exit you have multiple choices for that. I suggest if you want to use partial exit to look for exit on close above 50 CRSI or 70 CRSI. My prior setups that I have logged have all been based on exit on 5 MA. I have already posted several of these setups already. I have to add that some of the earlier published setups have not has as strict filter setups as this one that is based on my proven system. SETUP: Long at 112,24 or better OR Limit 1% below 112,24 Stop 5 MA Target 5 MA ( Optional: Partial exit @close above 50 CRSI or 70 CRSI) REACHED TARGET: Another winner 8 January.
NYSE:DEOLong
by MajorHunter
1
PRO-ASSURANCE with large gap openingPRA has had a big gap down that opens for a mean reversion towards my standard target for these setups at 5 MA at daily. If you would like a secondary target that normally gets you in security a bit earlier you can scale out with some of your posistion at Connors RSI reading with close above 70 on the daily. Stop and target is dynamic at 5 MA as use of stop lessens the edge of these setups. PS: SAME SETUP SIGNAL IS GIVEN IN FOLLOWING TICKERS AT NYSE FROM YESTERDAYS CLOSE (OR MARKET): PMT, NRZ, TWO. CHMI, ANH Look for an textbook setup I had some days ago with Winnebago with nice P/L (see link)
NYSE:PRALong
by MajorHunter