📉 “Buy low, sell high” sounds simple, right? That’s basically Mean Reversion in disguise.

Mean Reversion is the idea that prices eventually return to their historical average. Whether it’s a token, a stock, or even volatility—if it strays too far from the norm, traders start betting it’ll snap back like a rubber band.

Why does this matter?

Because markets overreact. Fear and FOMO push prices to extremes. Mean reversion gives traders a framework to spot opportunities when things look too hot—or too cheap.

It’s not a crystal ball, though. Some assets never bounce back. Others redefine their “mean” entirely.

So the real skill?

Knowing when a dip is just noise—and when it’s the start of a collapse.

Do you use mean reversion in your trades—or are you more of a trend follower?