Can we reverse trade?

<p id="isPasted">Reversals occur when the price direction of an asset changes. Reversals can occur either upwards or downwards. A reversal following an uptrend would be to the downside. A reversal to the upside would follow a downward trend. Chart reversals are typically not based on one or two periods/bars, but rather on the overall price direction.</p><p>Indicators such as moving averages, oscillators, and channels can help identify trends and reversals.</p>

<p>In finance, the term "reverse trade" typically refers to a type of transaction in which an investor sells an asset first and then buys it back at a later date, in contrast to a traditional trade, in which the investor buys an asset first and then sells it later. This type of trade can be used for a variety of reasons, such as to lock in a profit on a security that has appreciated in value, to generate short-term income through the collection of dividends or interest, or to speculate on a decline in the price of a security. However, the practice is not necessarily illegal but it can be considered as manipulation, and wash trade which is illegal.</p>

<p>Reversing a trade refers to canceling or undoing a previously executed trade. The ability to reverse a trade depends on the type of trade, market conditions, and the policies of the trading platform or broker. Some trades may be irreversible, while others may be canceled or modified subject to certain conditions. It is best to consult with your broker or the platform's customer support to determine if a trade can be reversed.</p>

<p id="isPasted">In the context of foreign exchange (forex) trading, "reverse trade" could refer to a trade that is executed in the opposite direction of a previous trade, in order to close the position and realize a profit or limit a loss. This is often referred to as "closing a trade" or "liquidating a position".</p><p>In forex trading, an investor buys a currency if they believe its value will increase relative to another currency, and sells a currency if they believe its value will decrease relative to another currency. A reverse trade would occur when an investor closes their position by taking the opposite action to what they did when they initially opened the position.</p><p>It's important to note that forex trading can be risky and it's important to have a solid understanding of the market and the factors that can impact currency values before making any trades.</p>

<p id="isPasted">Trading reversals is challenging but it can be lucrative. Paul Tudor Jones and Jesse Livermore were both basically reversal traders. Jones correctly traded a crash in 1987 and made 100 million dollars. Livermore made an estimated 100 million dollars in the stock market crash of 1929. The reason crashes are so lucrative is that most traders trade Buy side only and don’t know how to trade short or trade the downside when the volatility is wild.</p><p>Trying to pick reversal points is impossible. Every so-called reversal point is merely a possible reversal. Price blows through predicted reversal points all the time because the big players on long time frames need time to accumulate or distribute their huge positions. This time factor causes the price to continue to move and extend into extremes which no one can predict consistently with technical analysis. This is part of the manipulation and misdirection that Smart Money uses to run its business model. They know where every order to buy or sell is located so they use that liquidity to buy and sell when it is the most profitable for them.</p><p>Instead of focusing on reversal points, it is much wiser to focus on reversal zones, areas, or ranges where reversals are likely based on market structure and order flow.</p>