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Technical Analysisintermediate
REVERSAL
BREAKDOWN
DEATH CROSS
DISTRIBUTION
DIVERGENCE

Reversal

A sustained change in the direction of the prevailing trend, not just a temporary counter-move.

A reversal ends one trend and starts another. It requires structural evidence — an uptrend reversal needs price to break below a prior swing low and fail to make new highs; a downtrend reversal needs the opposite sequence.

Reversals are confirmed in hindsight. In real time, the first sign is often a divergence between price and momentum, a climactic volume spike, or an extended move into a major resistance/support zone. Trading reversals carries higher risk than trend continuation because you are fighting recent momentum.

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