There are a few signs that help traders realize that the market is changing direction so that we can make the right decisions during the trading process. Please consider the 7 signs below:

1. Trending momentum weakens, while trend reversal momentum is gradually strengthening.
The volume of price waves is contrary to the uptrend and is higher than those that follow the trend.

2. Price starts to trade on the other side of the short-term MA, such as the 10-day MA for several days.

3. There is a cross of the short term moving average and the long term moving average. For example EMA and EMA 10, EMA 10 and EMA 21, or EMA 50 and EMA 200,….

4. Price starts to move across the other side of the 200 moving average.


5. Consistently appeared strong supportive resistance against the trend. If in an uptrend, there is strong resistance, and in a downtrend, strong support appears. This will make it difficult for the current trend to maintain its trend.
The reversal signal continuously appeared.

6. The market moves sideways at the end of the trend and cannot form the bottom of the trend continuation structure.

7. Break the critical support resistance of a trend. During an uptrend, the price can break critical support or in a downtrend can break a critical resistance.

Here are 7 signs that can help traders identify a change in the current trend. And help traders plan in time, avoid trading at the end of the trend, seize opportunities to help traders trade at the top of the trend. And can exit in time when the trend is weakening.

However, these signs are just signed only, not confirmation. When you see a chart with many of these characteristics, it does not mean that the trend will reverse. Rather, each signal should be understood that they are the factor that attracts trend reversal traders to enter, increasing the likelihood of a trend reversal.