Properties of Reversals As you understand they will be the opposite of retracement ones: 1. Reversal could happen at any time, but it’s much harder to come after some previous strong move, since market still has an opposite momentum. Still, sometimes it could happen; 2. If reversal happens, it leads to much longer term movement in the opposite direction compared to retracement; 3. As a rule reversal often happens by impact of unexpected news or macro data. In other words, when fundamentals do change; 4. In most cases reversals are accompanied by some reversal patterns – H&S, Double Top/Bottom, Butterfly, 3-Drive, wedge, broadening top/bottom etc. Any of these patterns could include and, as a rule, include reversal candlestick patterns. 5. Appearing of reversal near strong support/resistance of a higher time frame is more probable. Very often such kind of reversals accompanied by standard divergence; 6. As reversal point becomes closer, the market starts to show deeper retracements to 0.786 and 0.88, then at last breaks all Fib retracement levels and reverses; 7. If market breaks pivot support 1 in bull trend or pivot resistance 1 in bear trend – it could be an early sign of reversal; 8. Long-term trend lines or price channels, if broken, could be an early sign of reversal; 9. If the market breaks strong area of higher time frame, say, daily time frame market breaks weekly confluence resistance + Agreement during retracement, as it seems, in bear trend – this tells that market is stronger than it seems and probably this is not just a retracement; 10. When the market shows swing in opposite direction greater than previous swing in direction of trend – this is early sign of reversal.