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Reversal
Technical AnalysisA change in the direction of price trend. A bullish reversal changes a downtrend to an uptrend; a bearish reversal changes an uptrend to a downtrend. Confirmed by pattern completion and volume.
Related Terms
Head and Shoulders
A bearish reversal pattern with three peaks: a higher middle peak (head) flanked by two lower peaks (shoulders).
Double Top
A bearish reversal pattern where price tests a resistance level twice before falling.
Double Bottom
A bullish reversal pattern where price tests a support level twice before breaking higher.