Peet_Serfontein

MAS: mean reverting trade!

Short
NYSE:MAS   Masco Corporation
Bearish divergence is notable!
Correcting from overbought territory.
High confluence of overbought price levels also supports a temporary pullback.
Correcting from the upper range of the linear regression channel - supporting a mean reversion trade.

Comments

thats the issue with reversion to the mean. how many different means can we find based on what we want to do in the symbol or what duration at what point does the daily mean for 30 days mean anything if 6 month mean is way above and the reversion short term is way below ? this is what has always fascinated me with mean rversion styles because there are so many different ways to make the data fit
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Peet_Serfontein cutlossking
@cutlossking, I am using a 200-day as a lookback period accross all markets and to keep it consistant and to keep a standard. I found over the years that it works for me.
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i am not sure how you got that mean but it looks wrogn if i scale back some the stock was much lower and this is based on points not percent?
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Peet_Serfontein cutlossking
@cutlossking, Hi thanks - I will have a look again but it is based on points. I am also calculating it via Python script as a backup for my analysis. I will just compare again.
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