Trend Reversal


A trend reversal is when the direction of an asset's price has changed, and the change can be either bullish or bearish. A trend reversal signals the end of one trend and the beginning of another. Therefore, this indicator helps us to identify and alert us that a trend reversal after an uptrend would be down, while a trend reversal after a downtrend would be up. Since price trends can occur on any time frame, trend reversals can also occur on any time frame and this indicator adjusts for different traders trading on different time frames depending on their trading style, so that anyone can use trend reversal strategies, regardless of the time frame in which they trade.

An uptrend is a series of higher swing highs and lows, so when reversing in a downtrend, you should expect to see a series of lower swing highs and lower swing lows. Similarly, when a downtrend, which is a series of lower swing highs and lower swings, reverses into an uptrend, you expect a series of higher swing highs and lows. To have greater benefit and probabilities, it is necessary to accompany this indicator with other indicators to confirm the trend changes.