Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Reversal.

A reversal occurs any time the trending direction of a stock or other asset changes.  Being able to spot reversal signals is of vital importance to the trader, as they can re-evaluate their current positions, exit while conditions are still favorable, and enter new positions based on the new trend direction.  A reversal strategy is a specific trading strategy that aims to profit from reversal trends within the market.