Best Mean Reversion Indicators

Рет қаралды 11,113

Күн бұрын

In this insightful video, we explore the best mean reversion indicators to enhance your systematic trading strategies. With a focus on the Relative Strength Index (RSI), Bollinger Bands, stochastic indicator, consecutive up/down bars, and internal bar strength, we provide valuable insights into each indicator's functionality and how to utilize them effectively in mean reversion trading.
Read the full article here - The Ultimate Guide to Mean Reversion Trading:
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Starting with the RSI, we analyze its ability to identify extreme price movements compared to recent periods. We discuss the significance of RSI thresholds for entry points and provide examples of how to leverage short-term reversals using a two or three-period RSI. Next, we delve into Bollinger Bands, which measure volatility and offer excellent mean reversion entry signals when the price falls below the lower band during an uptrend.
Additionally, we examine the stochastic indicator, a well-known oscillator that oscillates between zero and 100, falling during corrections and rising during rallies. We explain how to identify optimal entry points by using stochastics in conjunction with long-term uptrends.
Furthermore, we introduce the concept of consecutive up/down bars as a simple yet powerful mean reversion indicator. By observing extreme numbers of consecutive closes in one direction, traders can identify favorable entry points, particularly in trending markets.
Finally, we discuss internal bar strength (IBS), which measures where the closing price lies relative to the day's high and low. We highlight the significance of low IBS values in uptrends for buy signals, while high IBS values in downtrends can indicate potential short-selling opportunities.
These five indicators have proven to be highly effective in mean reversion trading strategies, offering valuable insights into short-term reversals and extreme market conditions. By incorporating these indicators into your systematic trading approach, you can enhance your ability to identify profitable entry and exit points.
Join us in this video as we provide in-depth explanations, chart examples, and practical tips for implementing these indicators effectively. Discover how to optimize your mean reversion trading strategies and unlock new opportunities in the financial markets.
Don't miss out on this valuable information! Watch the video now and take your systematic trading strategies to the next level. #meanreversion #systematictrading #meanreversiontrading #RSI #BollingerBands #stochasticindicator #consecutivebars #internalbarstrength
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Пікірлер: 22

@vallinero 3 ай бұрын

This is the type of trading I practice, and this is one of the most useful youtube videos i’ve seen. And i’ve seen like 50 thousand no kidding. Thank you so much, niw added two new indicators to my arsenal. 😊

@vallinero 3 ай бұрын

i’ve watched*

@EnlightenedStockTrading 3 ай бұрын

Awesome - thrilled you found it useful. glad to have you here!

@stephengibson7709 2 ай бұрын

This is an extremely useful video about mean reversion trading.

@EnlightenedStockTrading 2 ай бұрын

Thank you Stephen, I appreciate you taking the time to watch!

@itsoktoberight4431 2 күн бұрын

I use the Williams Percentage Range for mean reversion, you set it to a 200 period and it will give you the average divergence from the 200 period MA, why does no one else talk about this?

@EnlightenedStockTrading 2 күн бұрын

Nice approach - thank you for sharing!

@user-xu7xf6yq1s 9 ай бұрын

A very useful video mate, even for a trader like myself. Thanks for posting, and cheers.

@EnlightenedStockTrading 9 ай бұрын

Awesome - thank you for watching!

@proudroosterrooster2103 3 ай бұрын

Thank you for the excellent tutorial.

@EnlightenedStockTrading 3 ай бұрын

Glad you found it useful - thank you for watching and for taking the time to comment 😁

@OneCreator87 7 ай бұрын

Very good video, thank you

@EnlightenedStockTrading 7 ай бұрын

Glad you found it helpful - thanks for watching!

@newgate5298 6 ай бұрын

Great video! Just a quick question - where do you crystalize your profits?

@EnlightenedStockTrading 6 ай бұрын

Great question… there are many different meanings reversion exits you can backtest. Here are a couple that tend to work well: exit when… - the RSI2 crosses above 40 - the stock has a higher close - the stock crosses above a EMA5 - two higher closes in a row Etc You are really just looking for any short term strength

@surenkhalsa 11 ай бұрын

When you enter in the direction of Trend, its Trend Following..Converse is Meane Reversion..You state for MR, but examples are TF..Plz correct me if wrong...

@EnlightenedStockTrading 11 ай бұрын

Mean reversion is typically when you buy after a short sharp counter trend move and hold for the snap back to the trend then sell. Trend following is much longer duration and buys strongly trending instruments (often with breakouts but not always) and holding till the primary trend clearly changes… does that make it more clear?

@samanthahiggins8935 4 ай бұрын

hi thank you for sharing this, looks like a good strategy, can you share which indicator it is on tradingview for the consecutive up and down bars please, thanks.

@EnlightenedStockTrading 4 ай бұрын

Thanks for your comment… I am sorry I don’t use TradingView.

@samanthahiggins8935 4 ай бұрын

@@EnlightenedStockTrading no problem thanks for your reply 😀