Business, Legal & Accounting Glossary
Reversal, also referred to as trend reversal, is a change in the direction of a price trend.
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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This glossary post was last updated: 22nd March, 2020