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What is Mean Reversion Trading? Is it a profitable trading strategy? We have basically two broad lines of trading; trend trading or mean reversion. For a trend trader you are looking for a continuation of the move - so if the move is higher you are expecting price to keep pushing higher. Mean reversion is someone who is looking for those extreme moves and aiming to ride the move back down to a 'mean'. The theory here is that price will always revert to a 'mean'. What are the pros and cons of mean reversion trading systems? OK.
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