Forex Mean Reversion?

[ayazujacu]

OK so I have received a couple of emails about this system now but can find very little on it.

Forex Mean Reversion

I guess the premise is as the name suggests 'Mean Reversion' - I've carried out a bit of research into this and it does look plausible.

Does anyone have any thoughts on the system/ or a potential strategy using this trading method?

[Barrackdels]

Mean reversion is just one of the two primary ways people trade. They either follow trends (momentum) or play ranges (mean reversion), generally speaking.

[Bandaroen]

Trade the Trend
or
Trade the Fade

welcome to the second system .......and good luck calling the tops and bottoms

[Bashchenkokeva]

I've been using this method for over a month now and did a bit of testing. Overall, the system looks robust but is more tuned to swing trading (H4 works best). Anything lower than that, it is most likely to lose you money. Using the system on a 15 min. chart is a trade killer for sure.

On the H4, i'm using it with other indicators (trend) so as to identify if price does reverse at the bottom and the tops. My suggestion would be to set up a price alert for the extremes so you don't have to keep checking the charts all the time.

[bcar1qyd]

Last week USDJPY was kind of choppy but managed to make some good pips (closed the trade earlier than reaching the median line). This week, EURUSD is heading towards to the bottom so a potential long trade is in store.

I have been searching the net for this method, but most of the conversation seems to end with 'have you tried this'. It would be good if others who use this method could come forward and chip in with their ideas and trade set ups.