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

Question image

Understand the Problem

The question asks which of the four provided images depicts a Mean Reversion (Ranging) market. The user needs to analyze these images to identify the correct one.

Answer

Image 3 shows a Mean Reversion (Ranging) market.

The image that shows a Mean Reversion (Ranging) market is Image 3.

Answer for screen readers

The image that shows a Mean Reversion (Ranging) market is Image 3.

More Information

Mean reversion markets are characterized by prices oscillating within a horizontal range, often returning to an average level over time.

Tips

A common mistake is to confuse trending markets for ranging ones. In a mean reversion market, the price should rebound off a consistent mean level.

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