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.
