Mean reversion
The tendency of price to return towards an average after an extreme move. It is the basis of many range strategies.
Related terms
Range trading
Buying near support and selling near resistance while a market…
Bollinger Bands
Bands set two standard deviations above and below a moving…
Average daily range (ADR)
The average distance in pips between each day’s high and low over…
Average Directional Index (ADX)
An indicator of trend strength, not direction. Readings above…
Average True Range (ATR)
A volatility indicator that averages the true range, which…
Break of structure (BOS)
When price breaks a prior swing high or low, signalling a trend…