A market reversal refers to a change in the direction of a financial market trend. This can occur after a period of rising prices, known as a bullish trend, or after falling prices, known as a bearish trend. Traders and investors closely monitor various indicators, such as price patterns and trading volumes, to identify potential reversals. Reversals can be significant for investors as they signal a shift in market sentiment. For example, a reversal from a bullish to a bearish trend may prompt investors to sell their assets, while a reversal from bearish to bullish may encourage buying. Understanding these shifts is crucial for effective trading strategies.