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Mean Reversion

Mean reversion is the theory suggesting that prices and returns eventually move back toward the mean or average. This mean or average can be the historical average of the price or return, or another relevant average such as the growth in the economy or the average return of an industry.

Read more: Mean Reversion Definition | Investopedia http://www.investopedia.com/terms/m/...#ixzz4EHZdJb3Z

The Mean or Average could also be VWAP or a Pivot Point.

See also:
https://en.wikipedia.org/wiki/Mean_reversion_(finance)

http://www.dummies.com/how-to/conten...reversion.html

http://www.investinganswers.com/fina...n-reversion-94
Created by  steve2222 , July 13th, 2016 at 06:17 AM
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