A trend reversal simply means that the direction of market prices is changing. Time and again you will see trend reversals following a four step pattern. Typically, this includes the market making a new high, the trend line being broken, the market making an intermediate low, and a new model that does not match the first high. Frequently, you will see prices break and the previous low than ever. You may possibly come across terms like Double, Triple Tops, and Bottoms, these are all trend reversal patterns. Head and shoulders patterns are also popular reversal patterns.
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