> For the complete documentation index, see [llms.txt](https://brainautotech.gitbook.io/brain-auto-tech/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://brainautotech.gitbook.io/brain-auto-tech/trading-strategies/mean-reversion-strategies.md).

# Mean Reversion Strategies

* **Pairs Trading:** Identify correlated assets and buy one while short-selling the other when they deviate from their historical relationship.
* **Bollinger Bands Reversal:** Buy when the price touches or crosses the lower Bollinger Band (oversold), and sell when it touches or crosses the upper Bollinger Band (overbought).

<figure><img src="https://1285871847-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FTZL3YwvNKFilI7zPX2Ob%2Fuploads%2FXKsmAD6lX0ttlk56CI8d%2FWhatsApp%20Image%202024-04-21%20at%2016.31.53%20(1).jpeg?alt=media&amp;token=910451d7-19bb-47c0-919c-e66bdf605f2e" alt=""><figcaption></figcaption></figure>