Skip to content

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

Reversal definition

A reversal is a turnaround in the price movement of an asset: when an upward trend (or a rally) becomes a downward one (a correction), or vice versa. They can also often be referred to as trend reversals.

The opposite of a reversal is a continuation, or when an asset’s price trend holds. Often this means moving past key areas of support or resistance.

Technical traders use a variety of patterns and techniques in order to identify when a reversal may be on the cards. These include watching for completed patterns such as double/triple tops and bottoms, or a head and shoulders.

Visit our education section

Find out more about spotting trends.

A - B - C - D - E - F - G - H - I - L - M - N - O - P - Q - R - S - T - U - V - W - Y

See all glossary trading terms

Help and support

Get answers

Or ask about opening an account on 1800 601 799, or +61 3 9860 1799, or helpdesk.au@ig.com.

If you're calling from NZ, you can contact us on 0800 442 150

We're here 24 hours a day, except from 7am to 5pm Saturdays (AEST).