Which method is regarded as aggressive for momentum mean reversion entry?

The method considered aggressive for momentum mean reversion entry is when you trade as soon as momentum enters the extreme zone. This approach capitalizes on the expectation that once momentum reaches extreme levels—often signifying overbought or oversold conditions—a reversal is likely to occur. By initiating a position right at this moment, traders aim to capture the maximum available profit when the market potentially turns back.

This strategy requires a high tolerance for risk and a fast decision-making process, as it assumes that the extreme conditions will lead to a quick reversion in price. It's important to recognize that this aggressive stance can lead to significant volatility and potential losses if the anticipated turn does not happen as quickly or to the expected degree. Therefore, traders employing this method often need to have a solid risk management strategy in place.

In contrast, other methods may involve waiting for confirmation signals or observing momentum behavior over time, which typically leads to a more conservative approach and a potential delay in entering a position.