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Changing reversal trend

A reversal trend refers to the changing of a trend, change is expressed when the rate changes direction after a break, or penetration point. However, a reversal trend needs to be differentiated from a deviation. A deviation is a simple change in trend that doesn't lead to the complete change of the trend.

On Forex, when a change in a ascending trend is confirmed, it signals a good time to sell. But, when the change in a descending trend is confirmed, it represents a very good time to buy. The best way to confirm the change of either trend is to monitor the trend lines. Confirmation can be noted when a trend that met with a lot of resistance becomes a trend that is highly supported, or just the opposite.

Transition of a support line to a resistance line

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