# 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.

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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&#x26;token=54f0cf13-ec1c-41ce-b55d-a16d975e4cef" alt=""><figcaption></figcaption></figure>