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.
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.
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.
Scalping Forex Pairs After US Market CloseI'm sharing a strategy I've used for many years, that is scalping certain forex pairs after the US market closes and before the Asian markets open. During this time there isn't any economic news released so prices have a tendency to oscillate and don't trend which is a perfect environment to use the Buy Sell Bands for a mean reversion strategy.
Mean Reversion IdeaI am curious to see if price reverses back to the the MA's
RSI >70 in 4Hr
RSI >70 in 1Hr
MACD lines compressed in 4Hr
MACD lines compressed in 1Hr
Indicator heavy trade.
Let us see.
EU move towards MEAN EUR USD has been on a 200+ day bull run. Might be time to return to a more reasonable rate.
Home Bancorp $27.25 Price TargetP/E: 12.5
Dividend: 3.55%
P/FCF 9.36
Debt/Eq 0.02
Oper Margin 82%
Net Margin 17.5%
EPS Q/Q -60%
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
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.
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%***
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!
$GE - General Electric Mean ReversionGeneral Electric
Ticker: GE
Industry: Industrial
Entry: $6.44
Stop Loss: $5.47
Price Target: $9.00
Notes: Mean Reversion Trade, Failed breakdown of the Dec. ‘18 lows w/ bullish RSI divergence
Risk: $0.97
Reward: $2.56
Reward/Risk Ratio: 2.64
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.
SHORT USDMXN - Parabolic Advance Not SustainableSHORT USDMXN from 23.07 and 23.16. Just like TSLA and SPCE, expecting mean reversion back to avg price < 20's.
Cruise Liner Contrarian - RCLFeels like a massive overreaction, RSI more extreme than the previous 2 occurances and so is the downwards price action.
Looking for a sharp rebound.
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
