Define: Reversal

Business, Legal & Accounting Glossary

Definition: Reversal



What is the dictionary definition of Reversal?

Dictionary Definition


Reversal, also referred to as trend reversal, is a change in the direction of a price trend.


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Full Definition of Reversal


On a price chart, reversals undergo a recognizable change in the price structure. An uptrend, which is a series of higher highs and higher lows, reverses into a downtrend by changing to a series of lower highs and lower lows. A downtrend, which is a series of lower highs and lower lows, reverses into an uptrend by changing to a series of higher highs and higher lows.


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Reversal. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/reversal/ (accessed: April 08, 2020).
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Reversal. PayrollHeaven.com. Retrieved April 08, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/reversal/

Definition Sources


Definitions for Reversal are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 22nd March, 2020