Guidebook No. 3 of The Samxon Market Indicator Series by Paul Samson. Reversion to the mean is one of the oldest and most dependable ideas in market analysis, and one of the most misused. The common mistake is treating the mean as a fixed price the market must return to. This guidebook shows that the mean moves with the trend, and only changes direction when the market prints a swing point that breaks the trend.
What you will learn in the Reversion to the Mean guidebook
- What the mean, the stretch and the pull are
- How the mean follows the trend line, and the three steps by which a swing point changes it
- The two ways a stretch resolves: the snap-back and the time catch-up
- How to measure the stretch, and five ways traders put reversion to work
- Common mistakes, pros and cons, a bar-by-bar worked example and a quick-reference checklist
The central idea: A pull back to a rising mean is a buying opportunity, until a swing point turns the mean around. Knowing the difference separates healthy pull backs from a market that is falling apart.
Get your copy of Reversion to the Mean: $9.99 USD
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- Series: The Samxon Market Indicator Series, No. 3
- Author: Paul Samson, Samxon.ca
- Format: Digital guidebook with charts and worked examples
- Price: $9.99 USD
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For educational purposes only; not financial advice.
