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Technical AnalysisT
Trend Reversal
A change in the prevailing direction of a price trend, where an uptrend transitions into a downtrend or vice versa. Trend reversals are identified through patterns such as head and shoulders, double tops/bottoms, and breaks of key support or resistance levels.
Example
“A head and shoulders pattern on the SOL daily chart signaled a trend reversal from bullish to bearish, and the price dropped 25% after breaking the neckline.”