Glossary › reversal

Trading glossary · structure

reversal

When price stops going one way and starts going the other way for a while.

The fuller meaning

A change in trend direction. Single candles and patterns only hint at reversals; structure confirms them, for example a break of structure followed by lower highs and lower lows. Treating a pause such as a spinning top or harami as a reversal is a common mistake.

reversal.

Related words

above-average volume · bounce · break of structure · breakaway gap · breakdown · breakout · broken level · channel · choppy market · common gap