[ForexMeanReversion.com](http://forexmeanreversion.com/)
Forex Mean Reversion in action on the GBPUSD 4 Hour chart, January and February 2012
"Leading" And Lagging Indicators Don't Work
Many traders, even those with experience use systems based on at least one of the Top five indicators which fall into one of two categories; "Leading" or Lagging:
Moving Avarage - A Lagging indicator Stochastic - A "Leading" indicator MACD - A Lagging indicator RSI - A "Leading" indicator Bollinger Bands - A Lagging indicator
"Leading" indicators are inappropriately named because none of them lead with any form of reliability. If this was not true then all traders would simply Buy an Oversold market and Sell it when it was Overbought, and vice versa. Systems based on "Leading" indicators do not work for one simple reason – None of them lead with any form of reliability.
Lagging indicators and systems based on them are ineffective because, as the name suggests – They lag.
The Forex Mean Reversion System is based on the Forex Mean Reversion Indicator – It is neither a "Leading" or a Lagging indicator – It is a real-time indicator that is based on a fundamental fact.
It provides a true indication of when a market is Overbought/Oversold – On ALL instruments across ALL time-frames.
Forex Mean Reversion in action on the EURUSD Daily chart, since August 2010
Mean Reversion - It's A Fact
Mean reversion – FACT: Prices will fluctuate from a mean (price) to different Highs and Lows and will always revert to a mean (price) at some stage in the future. Below is a list of popular definitions for Mean Reversion, including their sources:
A theory suggesting that prices and returns eventually move back towards the mean or average - [Investopedia](http://www.investopedia.com/terms/m/meanreversion.asp). The essence of the concept is the assumption that both a stock’s high and low prices are temporary and that a stock’s price will tend to move to the average price over time - [Wikipedia](http://en.wikipedia.org/wiki/Mean_reversion_(finance)). The theory that a given value will continue to return to an average value over time, despite fluctuations above and below the average value - [Investor Words](http://www.investorwords.com/6860/mean_reversion.html).
Unlike no other indicator, the Forex Mean Reversion Indicator is a real-time indicator based on a fundamental fact. It calculates and displays a Mean (price) based on the Mean level (a Simple Moving Average) setting.
It then calculates and displays two levels either side of the Mean – These levels are based on percentage movements derived from the current Average True Range (ATR) reading.
Level 1 is a suggested Entry level (where a reversion to the mean is expected) and Level 2 is a suggested Stop level (where historically, prices rarely, if ever, extend to).
Both levels, as well as the Mean level setting, are user defined and are adjusted the same way as settings for other Technical indicators.
Forex Mean Reversion in action on the USDJPY 1 Hour chart, April 2012
Forex Mean Reversion – Trading System And Indicator
The Forex Mean Reversion product can be used as a trading system in its own right or as an indicator to compliment existing strategies. This is why I provide:
The Forex Mean Reversion template and The Forex Mean Reversion indicator
Those wishing to use the Forex Mean Reversion System simply load the template onto the charts they wish to trade and adjust the indicator to suit their trading style. Alternatively, the indicator can be added to any existing chart and again adjusted as required.
Suggested levels for selected instruments and time-frames are provided in my monthly newsletter however, the main benefit of the indicator is its flexibility. Users are able to use and adjust these levels or identify their own, for ALL instruments on ALL time-frames.
Easy to follow installation instructions are provided in the fully illustrated Forex Mean Reversion manual. The manual also includes comprehensive guides on trading the system “as is” and on adjusting the indicator settings.
Grab Your Copy And Start Trading Today
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What You Will Receive
Fully illustrated Forex Mean Reversion manual providing clear instruction on installation, set up and configuration.
Customised Forex Mean Reversion Template to which you can add your own indicators should you wish.
Customised Forex Mean Reversion Indicator which you can add to your existing charts.
Lifetime email support (answered within 24 hours, often much quicker).
Forex Mean Reversion – Beta Tester Testimonial
Hello mate,
"You have no idea how much I have spent on nonsense systems and indicators in the past. 5 minutes a day on the daily charts makes trading easy for me now.
Glad you decided to sell it at such a great price.
Aaron L. Cephas
About Me
My name is Steve Gammon and previously I worked in the back offices of some the largest financial institutions in the world over a 15 year period. This is not a claim to fame, just the truth. It is how I came to learn the mechanics of trading indicators and why they are so vital to successful trading.
Mean reversion was a subject I came across over 10 years ago and since then I have never traded without paying attention to it. I often trade my Forex Mean Reversion System “as is” on longer time-frames (4 Hour & Daily). However, when I am trading one of my other strategies, usually on a lower time-frame I always have the Forex Mean Reversion Indicator on my chart – The indicator alone has kept me out of an untold number of losing trades – In particular, false break-outs. Mean reversion is a fundamental fact, for that reason the Forex Mean Reversion indicator works on ALL instruments on ALL time-frames – You will see for yourself – When a market is truly Overbought/Oversold.
I am confident that whether you decide to use the Forex Mean Reversion product “as is” or you just decide to use the indicator to compliment your existing strategies it will make you a better trader, that is why I offer a 60 Day Money Back Guarantee.
The Forex Mean Reversion Indicator is not “Leading” or Lagging. It works in real-time and is based on a fundamental fact – Can you trade without it?
As well as trading my system I am also available to answer any questions you may have in relation to it. In my monthly newsletter I will answer general FAQ’s received from members and also pass on current observations by members and myself. One of the reasons I decided to share Forex Mean Reversion was to also share the knowledge which comes from doing so.
Forex Mean Reversion - The Benefits
Simple to set up, configure and trade
Suitable for absolute beginners
Mean Reversion is a fundamental fact
It applies to ALL instruments on ALL time-frames
Trade the system "as is" or use the indicator to compliment your existing strategies
Know when any market is truly Overbought/Oversold
Avoid False Break-outs
Less than a few minutes a day to trade the Daily and 4 Hour time-frames
Personal support via email and my monthly newsletter
The Forex Mean Reversion Indicator is not "Leading" or Lagging. It works in real-time and is based on a fundamental fact – Can you trade without it?
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Forex Mean Reversion – Higher Risk Trader Testimonial
Hi Steve,
I found your product on the internet after searching for a strategy based on mean reversion. I was pleased to find such a strategy and also to discover that it was not all hype – Forex Mean Reversion is a breath of fresh air.
It’s the first system I have come across that is based on sound fundamentals, many systems I have tried previously do not even bother to tell you upon what they are based, perhaps because they are not based on anything!
Just wanted to say a personal thank you
Robin Goodwin
Frequently Asked Questions (FAQs)
GETTING STARTED
WHAT DO I NEED TO GET STARTED?
When you purchase Forex Mean Reversion you will receive direct links providing immediate access to all that you need to get started:
The fully illustrated Forex Mean Reversion manual The custom Forex Mean Reversion template The custom Forex Mean Reversion indicator Lifetime email support (answered within 24 hours, often much quicker)
You will also need a Meta Trader 4 (MT4) account (Demo or Real) in order to use the custom template and indicator. If you do not already have one of these accounts, the application process is easy and full details are provided in the manual.
HOW LONG WILL IT TAKE ME TO GET STARTED?
Forex Mean Reversion really is simple to install and operate. Those with previous experience and the relevant Meta Trader 4 (MT4) account should be up and runing within 10 minutes or so.
Those with little or no experience who may also need to open a MT4 account should be up and running in less than half an hour.
Anyone experiencing any difficulties can contact me via email where I will be more than happy to offer all assistance necessary.
WHAT SIZE TRADING ACCOUNT DO I NEED TO GET STARTED?
Some people will tell you that you can start trading with as little as £200/$200/€200 and for me this is most annoying. Yes, of course you can start trading with an account of this size but it really should be put into some perspective.
Starting with a Trading account balance of £200 (I will use £’s as it’s my base currency) at 3% risk per trade means you will be risking £5 per trade. It means that if you achieve 5% a month, a great return for any trader, at the end of the year you will have made a profit of £120. Starting with a Trading account balance of £5,000 would equate to a return of £3,000.
So, the answer to this question is, you can start trading with whatever size account you wish. It’s all dependent on your circumstances and expectations, which should be realistic.
REMEMBER
NEVER EVER TRADE WITH MONEY YOU CANNOT AFFORD TO LOSE.
DO I NEED PREVIOUS TRADING EXPERIENCE?
No you do not. Forex Mean Reversion is really simple to install and operate and even complete beginners should be up and running in no time at all.
If you can open a chart, add an indicator and adjust its settings then you can use Forex Mean Reversion – It is no more complicated than using any other Technical indicator
Anyone experiencing any difficulties can contact me via email and I will be more than happy to offer all assistance necessary.
SYSTEM MECHANICS
WHAT INSTRUMENTS CAN I TRADE?
I only typically trade the Currency pairs, AUDUSD, EURCHF, EURGBP, EURUSD, GBPUSD, USDCHF and USDJPY. The reasons for this are:
These markets are open 24 hours a day, 5 days a week The spread is typically 3 PIPs or less, with most brokers Across the Daily and the 4 Hour time-frames they provide me with plenty of opportunities
Mean reversion is however a fundamental fact and it is therefore reasonable to suggest that the system will work on ALL instruments, Indices, Shares, Commodities, etc.
Of course the settings will require adjusting to suit each instrument and time-frame.
WHAT TIME-FRAMES CAN I TRADE?
Typically, I only trade the Daily and the 4 Hour timeframes. I know of only a handful of fulltime traders who trade lower timeframes than this successfully. Trading seven instruments on the Daily and the 4 Hour timeframes provides me with plenty of opportunities. It also ensures I spend less than 10 minutes a day trading Forex Mean Reversion.
I have not looked at other (shorter) timeframes (other than to prepare a screen-shot for this website), however, as Mean reversion is a fundamental fact it is reasonable to suggest that the system will work on ALL time-frames albeit with adjusted settings.
IN WHAT MARKET ENVIRONMENT WILL FOREX MEAN REVERSION WORK?
Forex Mean Reversion will work in all market environments however there are occasions when extremes are experienced.
An example of this would be in 2008 when there were extreme sell-offs across many markets. Periods like this do occur and when they do, mean reversion periods become more lengthy than usual and some losing trades are inevitable. However, as mean reversion is a fundamental fact, markets will always return to their mean and eventually the next trading opportunity will be taken, as usual.
This scenario is more applicable to those who choose to trade time-frames less than 1 hour during major news events as they are much more frequent. Depending on the timing of the trade and the outcome of the news event, mean reversions can be more lengthy than usual more often than not.
Trading a range of instruments on the higher time-frames (4 hours and above) lowers the risks associated with extremes.
DO YOU REALLY TRADE FOREX MEAN REVERSION YOURSELF?
Yes I do, it’s one of my core strategies. I typically trade the Currency pairs, AUDUSD, EURCHF, EURGBP, EURUSD, GBPUSD, USDCHF and USDJPY on the Daily and the 4 Hour time-frames and use the system “as is”.
Even if I am trading one of my other strategies I always have the Forex Mean Reversion indicator on my chart, it keeps me out of many potential losing trades, in particular, false break-outs.
WHY ARE THERE NO RESULTS ON THE WEBSITE?
There are no hard and fast settings for the Forex Mean Reversion indicator, for any instrument or timeframe – Nor are there any right or wrong settings.
It is completely possible that 10 people trading the same instrument on the same time-frame could be consistently profitable using completely different indicator settings. This is due to the fact that some traders prefer loose settings, they are willing to accept more losing trades but to be more active. Some prefer conservative settings, they take only the highest probability trades, perhaps, just a few times a year. Then of course there are all those somewhere in between and those at the extremes.
Grab Your Copy And Start Trading Today.
60 DAY MONEY BACK GUARANTEE
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ClickBank sells our products – they are a trusted online retailer specializing in digitally delivered products.
Please Note: These are downloadable e-book files. You will NOT receive a physical package shipped to you in the mail. The entire package will be immediately available for you to download and get started right away after ordering.
Forex Mean Reversion comes with a Full 60 Day No Obligation, No Questions asked Money Back Guarantee.
If you are not satisfied with the system simply let me know and you will receive a full refund.
HOW IS FOREX MEAN REVERSION DELIVERED TO ME?
After placing your order you will receive direct links with immediate access to all that you need to get started:
The fully illustrated Forex Mean Reversion manual The custom Forex Mean Reversion Template The custom Forex Mean Reversion Indicator
ARE THERE ANY ADDITIONAL OR ONGOING COSTS?
No, there are no additional or ongoing costs. All updates and forms of support are provided without charge.
Testimonials
Hi Steve,
I just love your indicator. I wanted to thank you for your support when I was getting started
I only trade the 1 hour chart but I know some of them looking to use the indicator on the lower timeframes.
Thanks
Rory McGregor
Dear Steve,
I have never traded Forex before nor have I ever used Meta Trader, in fact I had never heard of Meta Trader until I purchased Forex Mean Reversion.
Great product, easy to install and keeps me on the right side of the markets.
Thanks.
Kristine Campbell
Steve,
Forex Mean Reversion is the best indicator I have ever added to my chart. No constant trade validation, now I can just place trades as per the indicator and wait for the inevitable entry and reversion to the mean. Sometimes I even ignore my old indicators and take a trade simply based on your indicator alone.
Maximilian Lindholm
Steve,
Sorry about the cheesy McDonalds headline but “I’m loving it!”.
Forex Mean Reversion is an honest website, the indicator was pretty easy to install and it’s operation, completely mechanical. This has kept me out of many losing trades that I would have taken before, because I knew that price was due a reversion in the other direction.
I began to use your recommended settings to begin with and they provided me with good results, from then on I was able to fine tune it to my own needs.
For $57 it’s an absolute no brainer.
As I say – Lovin’ it.
Kai Wallace
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ForexMeanReversion©2012
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