Reversal

Reversal, also referred to as trend reversal, is a change in the direction of a price trend. On a price chart, reversals undergo a recognizable change in the price structure.

Reversal

Reversal, also referred to as trend reversal, is a change in the direction of a price trend.

 


Interpretation of Reversal

On a price chart, reversals undergo a recognizable change in the price structure. An uptrend, which is a series of higher highs and higher lows, reverses into a downtrend by changing to a series of lower highs and lower lows. A downtrend, which is a series of lower highs and lower lows, reverses into an uptrend by changing to a series of higher highs and higher lows.



Inverted Hammer Bullish Reversal

Inverted Hammer Bullish Reversal

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