Definition
When an uptrend turns into a downtrend, or the other way around.
The story
A reversal is easy to name afterward and hard to spot while it's happening: a normal dip in an uptrend can look exactly like the start of a reversal. That's why many traders wait for the structure to change, for example a lower high after a run of higher highs, before calling it one.
Why you'll see it
Coverage uses it when a market that had been rising or falling clearly changes direction.
Connects to
Market structureHigher highs and higher lowsLower highs and lower lowsHead and shouldersDouble top and double bottom
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms