Based on the Random House Dictionary, © Random House, Inc. 2009.
Cite This Source
Copyright © 2009 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
Cite This Source
Reversal
Re*ver"sal\, a. [See Reverse.] Intended to reverse; implying reversal. [Obs.] --Bp. Burnet.Reversal
Re*ver"sal\, n. [From Reverse.]1. The act of reversing; the causing to move or face in an opposite direction, or to stand or lie in an inverted position; as, the reversal of a rotating wheel; the reversal of objects by a convex lens. 2. A change or overthrowing; as, the reversal of a judgment, which amounts to an official declaration that it is false; the reversal of an attainder, or of an outlawry, by which the sentence is rendered void. --Blackstone.Cite This Source
Reversal
A sudden change in the price direction of a stock, index, commodity or derivative security. Also referred to as a "trend reversal", "rally" or "correction".
Investopedia Commentary
A reversal can be a positive or negative change against the prevailing trend. Technical analysts watch for these patterns because they can indicate the need for a different trading strategy on the same security.
For example, if a technical analyst holds stock ABC and notices a reversal pattern, he or she may want to consider closing his/her existing long position and assuming a short position to capitalize on the potential downward movement of the stock's price.
Related Links
Introduction To Technical Analysis
Market Reversals And How To Spot Them
See also: Dead Cat Bounce, Derivative, Index, Pattern, Stem The Tide, Technical Analysis, Trend, Trend Analysis
Cite This Source
Main Entry: re·ver·sal
Function: noun
1 : an act or the process of reversing
2 : an instance of reversing
Cite This Source
Main Entry: re·ver·sal
Pronunciation: ri-'v&r-s&l
Function: noun
: an act or the process of reversing
Cite This Source
reversal re·ver·sal (rĭ-vûr'səl)
n.
- A change to an opposite condition, direction, or position.
- A condition in which an individual has difficulty distinguishing the lowercase printed or written characters of particular letters: p from q; g or b from d; or s from z.
- The change of an emotion into its opposite, as from love into hate.
Copyright © 2002, 2001, 1995 by Houghton Mifflin Company. Published by Houghton Mifflin Company.
Cite This Source
Copyright © 2009, Dictionary.com, LLC. All rights reserved.


səl