Momentum vs Mean-Reversion: Which Scanner Signals Win?

Most AI scanners surface two families of opportunities: momentum breakouts and mean-reversion fades. Both can work—if rules fit the market regime.

Momentum Playbook

• Trigger: price clears value area high + volume spike + rising OI.
• Invalidation: back inside value on closing basis.
• Targets: 2R at measured move; trail remainder.

Mean-Reversion Playbook

• Trigger: 3–4σ deviation from VWAP with funding extremes; scanner tags “exhaustion.”
• Invalidation: continuation beyond 1σ from entry.
• Targets: VWAP and prior value mid.

Choosing the Right Regime

Use your scanner’s regime tag: trend → momentum; range/chop → mean-reversion. Mixing them without regime filters causes whipsaws.

Log, Review, Improve

Record signal, regime, risk, result. After 50 trades you’ll know which side fits your psychology and schedule.

🔗 Get the Regime Filter Cheat-Sheet (ClickBank)
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Image Prompt: Split graphic: left shows breakout candles with volume surge; right shows price snapping back to VWAP.

🔗 Next Read: On-Chain Whale Alerts: Turning Flow Into Trades

Momentum versus mean-reversion trading signals