Reversal with doubling.

The movement of a trend in Forex consists of exchange rate fluctuations in one direction or the other, and some of them
occur against the main trend.

For example, if the price of a currency pair rises, then with a high probability you can expect it to fall in the near future, even by a few points, but still a fall. The “Reversal with Doubling” tactic is based on this fact. When opening a position, any trader is sure that he has chosen the right direction, but such a belief is not always true and losses on a recently opened order continue to grow; in this case, the tactic of reversing the position is used.

The main thing when using it is to choose the right place to close a position on Forex and a new entry into the market so as to prevent another mistake.

The use of a reversal is more clear in a practical example:

You open a buy deal with a volume of 1 forex lot , and the leverage or currency pair used for trading does not really matter, the main thing is that the price minimums and maximums are clearly tracked on the chart.

After several minutes of trading, the price went against your position and has already reached the nearest minimum opposite to the direction of your uptrend and is gradually overcoming it, forming a breakout.

In fact, this serves as a signal that a trend reversal has occurred.

But you should not take hasty actions, after the price forms a new minimum it will go up again, close the first trade at its maximum, thereby minimizing losses and at the same time open a sell trade with a volume of 2 lots for the same currency pair.

This technique compensates for losses incurred as a result of opening the first order.

The last trade is closed as soon as the price begins to approach its previous minimum.

Despite its frequent use, the doubling reversal tactic has several weaknesses. Firstly, the difficulty with setting a stop loss order is that it must be located much further than the last minimum or maximum. Secondly, if the price goes much further after breaking through the level, and the trader is trading with a weakly secured position, quite large losses are possible.