Short-Term Mean Reversion With RSI(2): How the Setup Works
How the RSI(2) mean reversion setup works: entry and exit rules, why backtests overstate results, and how traders and investors should size risk.
How the RSI(2) mean reversion setup works: entry and exit rules, why backtests overstate results, and how traders and investors should size risk.
Trend following and mean reversion are opposite ways to trade the same market. This article explains how each works, when each tends to fail, and how to decide which fits your time horizon and temperament.