What is a trend reversal?
A trend reversal is when thechanges completely and moves in the opposite way to the current .
For example, when anturns into a , or a downtrend turns into an uptrend, a reversal has occurred.
Trend reversals can occur at any time and can be difficult to predict. They can be caused by a change inthat might lead to a long-term in the opposite direction.
In the number_1 and then reverses to the downside number_2.below, price is in an uptrend
Visit our lesson on market sentiment to help you identify reversals and the direction of the markets:
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