Mean Reversion Strategy

Price often reverts to its average after extreme moves. Mean reversion traders exploit this by:

— Spotting overbought/oversold levels using tools like Bollinger Bands or Keltner Channels

— Buying dips or shorting spikes near the 3rd standard deviation

— Targeting a return to the 20-day moving average

— Using stop-losses in case the trend continues

It’s not foolproof — but with proper risk/reward, it’s powerful in ranging markets.

#ShariaEarn #BTCBreaksATH #Write2Earn