What "The Mean" Really Is — and Why Price Comes Back to It
The mean is the starting point for understanding reversion-to-mean trading. Learn why it is a reference point for balance, not a guarantee.
Category
The Market
Market conditions, context, volatility, momentum, and how the environment changes the quality of every decision.
Reversion Is Not Reversal
A move back toward the mean does not automatically mean the market has changed direction.
What Extreme to Mean Really Means
Learn how the bell curve, rubber band effect, and market location explain what Extreme to Mean really means for trader decision quality.
How Market Conditions Change the Quality of a Setup
Why the same setup can be useful in one market environment and dangerous in another.
Is Warren Buffett Really a Reversion-to-the-Mean Trader?
Buffett's famous idea about fear and greed is really a lesson about emotional extremes and waiting for the crowd to misprice opportunity.
Context Comes Before the Candle
One candle can look convincing, but the market around that candle decides whether it matters.