What is a Indices Trend Reversal Signal?

Indices Trend Reversal Meaning and Definition of Indices Trend Reversal

A indices trend reversal in indices trading is when the direction of stock indices prices change and start moving in the opposite direction.

To identify this indices trading reversal setup traders use the indices trend reversal trading strategy of indices trend line break.

A indices trend reversal means that a up indices trend reverses and starts moving in a downward direction and for a indices trading down trend reversal the down indices trend reverses and starts moving in an upward direction.

Because a indices trend reversal is a change in the overall movement of stock indices price and not based on the movement of one indices candlesticks, indices traders use the indices trend reversal setup to determine when the indices trend has been reversed.

Up indices trend Indices Trading Reversal

When stock indices price breaks below the upward indices trend line (support) the stock indices trading market will then move downwards

Indices Upward Indices Trend Line Break - Indices Trend Reversal Meaning and Definition of Indices Trend Reversal

This indices trend reversal trading signal is considered to be complete with the formation of a lower high of the indices price. This also provides a trading opportunity to sell once the indices trend line is broken -indices trading reversal signal.

Down indices trend Indices Trading Reversal

When stock indices price breaks above the downward line (resistance) the stock indices price will then move up

Indices Downward Indices Trend Line Break - Indices Trend Reversal Meaning and Definition of Indices Trend Reversal

This indices trend reversal stock indices signal is considered to be complete with the formation of a higher low. This stock indices reversal trading setup also provides a trading opportunity to open a buy indices trade once the indices trend line is broken -indices trend line reversal indices signal.

Indices Trend Reversal Trading Strategy

After stock indices price has moved in a certain direction for an extended period of time within a indices trend it reaches a point where it stops moving within the indices trend. When this happens we say that the indices trend line has been broken and this is interpreted as a indices trend reversal indices signal.

Since the indices trend line is the point of support or resistance and this point of support or resistance has been broken after a indices trend line break - then we expect the stock indices price to move towards the opposite direction and this is interpreted as a indices trend reversal indices signal.