Reversal breakouts

1. Consolidation After a Trend:

   • Similar to continuation breakouts, there’s a pause or consolidation after a prolonged trend.

   • Buyers and sellers catch their breath.

1. Reversal Decision:

   • Traders collectively decide that the trend has exhausted itself.

   • They push the price in the opposite (reverse) direction.

2. Result: A “reversal breakout” occurs.