The trend is your friend. How many times have you heard that saying? HOW MANY? It’s a deeper philosophical question. You get to believe only one of the following, not both: 1) The market trends 2) The market is mean reverting So which is it? The answer might surprise you It is both, but it depends on the time frame. This is the sort of thing the scientists and eggheads at places like Renaissance Technologies have studied to no end. They would write academic papers on it, except that trading on this knowledge is a lot more profitable than writing...