Trend reversals in price action

Written by Miroslav Marinov

Miroslav Marinov

Miroslav Marinov, a financial news editor at TradingPedia, is engaged with observing and reporting on the tendencies in the Foreign Exchange Market, as currently his focus is set on the major currencies of eight developed nations worldwide.

, | Updated: September 12, 2025

Up to now, you should have learnt the specific characteristics of price action trading in trending markets and trading ranges. However, trading with the underlying trend does not last for ever. Eventually, there will be indications that the market is reversing its direction, and it is extremely important for a price action trader to detect them in time and to position themselves in the most appropriate way.

In this final chapter of our Price Action Trading guide, you will become familiar with terms such as actual reversals; reversal targets and tests; reversals following ‘spike plus trading range’ formations; and minor and major reversals. We shall also discuss when patterns fail and the common mistakes traders make. Last but not least, this chapter provides general advice on what you need to do if you are aiming for a successful career as a price action trader.