Reversal: A reversal is a sharp turnaround in the direction of an asset’s price. It occurs when the price suddenly shifts downward after a prolonged period of increasing prices, or vice versa. Reversals can be caused by factors such as economic news, changing market sentiment, or large buy/sell orders. Investors should watch for reversals as they can provide valuable opportunities to enter or exit the market when the trend changes direction. By being aware of potential reversals and acting quickly, savvy traders can take advantage of these powerful shifts in the market.