Look at the images 1-4. Which of these shows a Mean Reversion (Ranging) market?

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Understand the Problem

The question is asking which of the provided images (1-4) depicts a Mean Reversion market, specifically looking for a ranging market pattern among the charts.

Answer

3

The final answer is 3.

Answer for screen readers

The final answer is 3.

More Information

Mean reversion suggests that asset prices tend to return to their mean or average levels over time. A ranging market shows price levels bouncing back and forth within a range, indicative of mean reversion.

Tips

Common mistakes include confusing trending markets with ranging markets. In the latter, prices fluctuate within a specific range.

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