BotsPediaGlossary
Reversal Trading

Reversal Trading

Reversal trading is a type of strategy that seeks to capitalize on market reversals. A market reversal is when the price of an asset moves in the opposite direction from its previous trend. When this happens, it becomes very similar to trend trading. A reversal can be either bullish or bearish. When utilizing this technique, ensure the reversal is real and not just a retracement. Therefore, Fibonacci retracement should be used to confirm it.