Last Updated on: 15th February 2021, 02:39 am
In forex trading, a reversal refers to a change in the direction of a price trend, whereas the reversal pattern is a formation of the support and resistance, reversal candlesticks, and various chart patterns that have or can cause a reversal in the price trend of a currency pair. For instance, in the candlestick analysis, the hammer, inverted hammer, shooting star, and test bar are a few examples of reversal patterns.
Vincent Nyagaka is a Professional Trader, Analyst & Author. He has been actively engaged in market analysis for the past 7 years. He has a monthly readership of 100,000+ traders and has taught over 1,000 students since 2014. Vincent is also an experienced instructor and public speaker. Check out Vincent’s Professional Trading Course here.