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Meanreversion

ARKK Potential mean reversion pullback/correctionARKK price sitting a +3 standard deviations above identified linear regression mean with a potential RSI divergence identified signaling a possible pullback or correction to levels of support. Linear regression analysis ARKK's current bull trend beginning on MAR 18 2020 has been well identified A linear regression trend pulled to current date gives a Pearson's R maxed at 0.97634... indicating a strong correlation Current price is sitting at +3 standard deviations (SD) above linear regression mean RSI Divergence RSI divergence identified from DEC 23 2020 - JAN 15 2021 levels As per my own RSI strategy, I overlay fibonacci retracement levels on my RSI indicator Previous observations indicate that a price break below the 0.618 RSI level corresponds to a break of identified areas of support when found with a divergence of price action Support at RSI range of 48-52 could correspond with a retest of some region of price action support Cumulative analysis As price action continues to make higher highs and RSI continue to make lower highs, I am looking for a pullback or potential correction to coincide with a potential mean reversion. Using RSI bearish divergence as a signal, I have a higher degree of confidence that this will occur. Using fibonacci extension/retracement levels as well identified areas of support and resistance as they correspond to linear regression mean and SD areas, key areas of support appear to be at approximately $141.50, $138, and $131. I will be watching price action over the next few days to watch for confirmation or rejection of this analysis as RSI is still in a bullish range and volume could certainly continue to push price higher and invalidate the currently observed possible divergence signal. A bullish move and breakout of ATH could see a move to $156.
CBOE:ARKKShort
by spreck
2
NQ Power Range Report with FIB Ext - 1/13/2021 SessionContract - CME_MINI:MNQH2021 - High - 12901.00 - Low - 12872.50 Evening Stats - Gap: = N/A - Session Open ATR: 200.94 - Volume: 16k - Open Int: 231k - Trend Grade: Bullish Key Levels (Rounded - Think of these as a range) - Long: 13337 - Short: 12415 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQH2021Long
by mv3trader5
2
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.
Short
by kh_thetrader
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.
Long
by kh_thetrader
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.
by kh_thetrader
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
Short
by AzizKhanZamani
2
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.
TVC:NDQShort
by GlobalMarketSignals
3
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%***
DJ:DJILong
by GlobalMarketSignals
1
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!
CME_MINI:NQ1!Short
by ThrivingProject
2