Mean Reversion Reverse Strategy (Mean Reversion / Bollinger Squeeze)

Logic Explanation: Price is like a stretched rubber band. When it deviates too far from the moving average (overbought or oversold), it will be pulled back toward the moving average. This strategy is specifically designed to capture the retaliatory rebound after a “pin” move.
* Detailed Operations:
* Set Bollinger Bands (Bollinger Bands): Use a standard deviation of 2.0.
* Watch for Signals: When the candlestick is completely separated from the upper band or lower band of the Bollinger Bands, and the RSI indicator shows overbought (>80) or oversold (<20).
* Entry: When a reverse, shrinking shadow appears, open a position in the opposite direction.
* Take Profit: Set the target at the middle band of the Bollinger Bands (MA20).
Case Analysis:
A major negative news causes ETH to crash instantly by 10%. The price directly drops below the lower Bollinger Band, and the RSI reaches 15.
* Operation: Don’t sell in a panic. Wait for a one-minute candle to show a stabilization signal, and then open a long position with a small position size.
* Result: The price quickly pulls back to the middle band, and you complete an “oversold rebound” arbitrage in a very short time.
$ETH