> For the complete documentation index, see [llms.txt](https://kreioslabsdocs.gitbook.io/kreioslabs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kreioslabsdocs.gitbook.io/kreioslabs/how-tos/how-to-use-setup-cards/reversal-setup.md).

# Reversal Setup

#### PARAMETERS

Price is below long-term moving average and is attempting to reverse, showing some strength.

#### EXAMPLE

This is the 4h chart of INJ. As you can see it's been trending lower for quite a bit (some coins will be downtrending for longer / shorter). It then proceeds to show some strength, indicating a reversal might happen. The arrow is where KreiosLabs would have flagged this coin as reversal.

<figure><img src="/files/JABGqaZHvPmHTf4XZSoP" alt=""><figcaption><p>INJ 4h Chart</p></figcaption></figure>

#### REMARKS

Sometimes, when coins get flagged as reversal they seem to be "too high". My advice is you can either buy it there or wait for a retracement - you can use whatever strategy you want here be it placing a limit on the nearest fair value gap (FVG) or measuring a Fibonacci retracement and placing a bid there. \
\
At the end of the day, it's all about tradeoffs. Some coins won't give you a retracement and some will do. Alternatively, advanced users can use reversal in combination with a different setup in the higher timeframe. For example, using a 1h reversal to anticipate 1D momentum/pullback setup. More on this in the future.

{% hint style="info" %}
I personally never trade reversals on its own unless they appear somewhere else in higher time frame.&#x20;
{% endhint %}


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