A swing or reversion to the mean style of trading is a trading strategy that involves identifying securities that have deviated from their mean or average price levels and then placing trades in the opposite direction of the deviation, in anticipation of the security reverting back to its mean price. The underlying assumption of this trading style is that markets tend to move in cycles and that when a security deviates too far from its mean price, it is likely to eventually revert back to that mean. Traders who use this style typically look for securities that have recently experienced a sharp increase or decrease in price, and then wait for signs that the trend is reversing before entering a trade. Swing traders typically hold positions for a few days to a few weeks and rely on technical analysis to make trading decisions. This approach is different from other trading styles, such as trend following, which seeks to ride a trend as long as possible, or day trading, which involves buying and selling securities within the same trading day.