What is reversal? Back to list

Member SinceJul 08, 2021

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Aug 05, 2022 a 12:37
In contrast to trend-following methods, reversals involve identifying a market's regular top or bottom. Technical indicators are frequently used to buy, sell, and trade reversals in order to identify potential market entry points. Some examples include stochastics, candlestick patterns, and moving average crossings. When a currency pair becomes "overbought" or "oversold," a reverse trade is executed. To do so, sell against a bullish trend and buy against a bearish one. Reversal strategies are frequently advocated in Forex buy and sell recommendations, but it's important to remember that they can be riskier and more difficult to implement.

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