> For the complete documentation index, see [llms.txt](https://trnd-bot.gitbook.io/trnd/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://trnd-bot.gitbook.io/trnd/trnd-trainer/intro-to-charting-and-technical-analysis/introduction-to-charting/support-and-resistance/breakouts/reversal-breakouts.md).

# 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.

<figure><img src="https://1202482183-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FOMCfkIQdD0p3a3DRHXex%2Fuploads%2FfO56R4oX7eoFX9OwxC1Q%2FScreen%20Shot%202022-10-24%20at%207.26.23%20PM.png?alt=media&amp;token=d18bd916-7986-4c44-ab82-78727089a799" alt=""><figcaption></figcaption></figure>

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.

<figure><img src="https://1202482183-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FOMCfkIQdD0p3a3DRHXex%2Fuploads%2FFWqsG7Sk7CekhCH6nveJ%2FScreen%20Shot%202022-10-24%20at%207.28.37%20PM.png?alt=media&amp;token=54f0cf13-ec1c-41ce-b55d-a16d975e4cef" alt=""><figcaption></figcaption></figure>