What charts do traders look at? Where do they find their strategies? How do they place a winning trade? Mean reversion can provide traders with a simple, data-driven approach that doesn't require industry knowledge or a good gut call to apply. Markets that many traders have deemed as mean reversion markets include interest rates, currencies, energies and metals. Many traders will scale into a trade as the market moves further and further from its long-term mean. Then, they can close the trade for profits when the market is, say, half the way back to that mean, though you can alter that management amount depending on your confidence level or the amount you were looking to make.
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