CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

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.

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