The reversal breakout logic is almost the same as the entire "MA crossover reversal" logic
The MA cross mean-reversion approach is
basically about holding a trend until the end of the trend
So
・Williams percent range mean-reversion
・Align with the MA trend
These are trend-following or breakout logics, and compared to them,
the MA cross mean-reversion switch is “the most stable mean-reversion method.”
Above all, it is easy to understand, and
once a trend appears, the trend market is less likely to send counter signals
With other mean-reversion signals,
in a trending market there is a slight pullback, and a mean-reversion signal appears in the opposite direction
tendencies are common
However, when the MA is established,
if the trend has not pulled back, the mean-reversion flow continues as is
That said, when it comes to a stable logic,
profitability is limited to the zone where gains occur; otherwise it is a wash
Because the market is full of noise,
with lots of noise, except in stable market conditions, you are alternately making profits and losses
Especially in the unfavorable zones of trend-following trading
I think the stop losses are tight little-by-little
However, once a trend appears, subsequent profits follow
So you should aim for those opportunities
And this kind of trend-following trading logic is all about getting used to it
Because you gain familiarity, discretionary trend-following stands out
It’s better to become accustomed to trend-following discretionary trading early
However, until a trend appears, trend-following is “a series of disadvantages,”
Similarly, it’s a mental-trading approach
Among trend-following logics, the most stable is
MA cross trend-following, because it universally yields profits
The strength of a trending market is its steady trend progression, after all
A moving average cross that repeats the trend progression will eventually yield profits
But at the end, a mental-trading aspect awaits
It takes time for the market to stabilize
And it is a tough period for trend-following,
so trend-following remains mental-trading until the very end
Therefore, trend-following is not so overwhelmingly effective
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