Reversal
a.k.a. Trend reversal
When a trend changes direction: an uptrend becomes a downtrend, or the other way round.
In plain English
When a trend changes direction: an uptrend becomes a downtrend, or the other way round.
A reversal is the moment the tide turns. An uptrend stops making higher highs, buyers lose control, and sellers start driving price lower. Unlike a pullback, which is a pause before the trend resumes, a reversal is a genuine change of direction.
Traders look for clues like double tops, head and shoulders patterns or reversal candles. The hard part: early on, a reversal and a pullback look identical.
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