I placed a sell order on USDJPY and later noticed that it began to show bullish signals. I opened a position in the opposite direction a few candlesticks later, and made 3x the profit of my og short position. (Let’s say I canceled the og position; but still made a small profit) What would this be called? Is there a name for this?
If you have a buy and a sell order for the same pair open at the same time, it’s called hedging.
I don’t think there is a name for it, if you first make a profit in one direction, close the position, and then make a profit in the other direction…
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Closing a trade in one direction and immediately opening another in the opposite direction is called “stop-and-reverse”.
Its rare that a strategy can incorporate this, though it can sometimes happen to be the right response. For example if you buy on a very strong bullish signal but price stalls and then drops quickly. This can be seen as an extremely bearish signal and it might be a good short entry signal.
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Although you did it intuitively, you did the right thing. I’m not sure if it was knowledge that got you there or a moment of luck, but winners are not judged, the important thing is that you got the result you wanted.
its call flute
I agree that many people use it because the hedging works. You have to get the level and volume right.
Risk management is also important here.
Of course it’s a hedge.
It is actually a relevant format.
It is a pity that many investment and brokerage companies do not allow you to do this.