From TradingView · · 30s
Mean Reversion: Price Snapback in Crypto
Crypto prices snap back to middle after extreme swings.
In brief
Crypto prices snap back to middle after extreme swings. Crypto prices sometimes return to average after extreme movements. Originally reported by TradingView.
What is mean reversion
Crypto prices sometimes snap back to average after extreme swings.
How to spot mean reversion
Traders watch moving averages, Bollinger Bands, and RSI for price reversals.
Mean reversion trading example
Shorting a price above moving average targets the average with stop above recent high.
The big picture
Crypto prices sometimes return to average after extreme movements.
