"Reversion trading" refers to a strategy where investors aim to profit from a temporary deviation or extreme shift in a financial asset's price. When an asset's price moves excessively away from its historical average or trend, reversion traders expect it to revert or return back to its normal level. They take advantage of these price imbalances by buying when the price is low and selling when it rises, in hopes of making a profit when the asset returns to its usual value.
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