Should we target for trend reversals for getting a better profit?

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Zea · Accepted Answer

A trend reversal or a trend shift is a phenomenon where the price of a stock or security changes direction entirely. Reversals can be bullish or bearish, depending on the direction of change. A bullish reversal occurs when the price, which was originally falling, starts to rise. Conversely, a bearish reversal occurs when the price, which was originally rising, begins to fall.These points of reversal can be prime areas to enter a new trade or close an existing position. For instance, if you are currently long on a stock, a bearish reversal may be the ideal time to exit that position and enter a new short position instead. That said, some reversals may be false signals where the price appears to change direction, only to reverse once more and continue in the original direction again. If you want to leverage a potential trend shift in the market, make sure you set a tight stop-loss to account for such potentially misleading signals.

Should we target for trend reversals for getting a better profit?

1 Answer

1 Answer

Should we target for trend reversals for getting a better profit?

1 Answer

1 Answer

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