Trend Reversals (Market Structure Shifts)

Trend Reversals

Trend reversals, or market structure shifts, occur when a prevailing trend changes direction. In this lesson, we’ll explore how a bullish trend shifts to bearish when higher highs and higher lows turn into lower lows and lower highs, and vice versa.

We focus on identifying these reversals at key levels—such as highs, lows, and inefficiencies—where the market is more likely to change direction. Understanding these crucial points will help you anticipate trend shifts and position your trades effectively.