A bearish reversal is a term used in financial markets to describe a situation where the price of an asset, such as a stock or commodity, changes direction from an upward trend to a downward trend. This shift often signals that the asset may start losing value, prompting traders to sell their holdings to avoid losses. Traders often look for specific indicators, such as chart patterns or technical signals, to identify a potential bearish reversal. Common patterns include the head and shoulders or double top, which suggest that the upward momentum is weakening and a decline may follow.