Mean Reversion

What it means

Mean-reversion traders look for stretched conditions and anticipate some movement back toward a reference such as VWAP or a moving average.

What to watch

Strong trends can stay stretched for a long time. Mean reversion works best when the broader context supports balance rather than expansion.

Where traders usually run into this

Mean Reversion is most useful once it is tied to a concrete page, chart decision, or workflow question.

• VWAP keeps this term attached to a real glossary instead of leaving it as standalone jargon.
• Deviation Bands keeps this term attached to a real glossary instead of leaving it as standalone jargon.
• Support and Resistance keeps this term attached to a real glossary instead of leaving it as standalone jargon.

Best next page if this term is blocking you

If you understand the definition but still do not know what to do with it, start with VWAP. That page is the fastest way to see how mean reversion shows up in a real glossary workflow.