Richard T743_ Young#50

ดูการแปล

What is mean reversion strategy in forex?

Mean reversion assumes that prices eventually revert to their average or equilibrium. Traders look for overbought or oversold conditions using RSI, Bollinger Bands, or moving average deviations. Institutions apply it in statistical arbitrage, pairing correlated currencies. Retail traders often attempt it in range-bound pairs like EUR/CHF. Benefits: frequent opportunities and high win rates. Risks: prolonged trends can wipe out mean reversion positions. Discipline and defined exits are crucial. Mean reversion highlights that forex markets oscillate between extremes, but survival requires respecting when markets defy gravity longer than expected.