Identifying trend reversals is a crucial skill in technical analysis. Here are some key indicators and techniques to help you spot potential trend reversals:

1. Candlestick Patterns:

Look for reversal candlestick patterns like "Hammer" or "Shooting Star" at the end of a trend.

Patterns such as "Doji" or "Engulfing" can signal indecision or a potential shift in market sentiment.

2. Trendline Breaks:

A break in the trendline, especially after a prolonged trend, can indicate a potential reversal.

Pay attention to the angle and steepness of the trendline.

3. Moving Averages:

Watch for crossovers of short-term and long-term moving averages, such as the death cross (short-term crossing below the long-term) or golden cross (short-term crossing above the long-term).

Moving average divergence/convergence (MACD) can also signal a change in momentum.

4. Relative Strength Index (RSI):

An RSI above 70 indicates overbought conditions, and a sudden drop below 70 could signal a potential reversal.

Similarly, an RSI below 30 suggests oversold conditions, and a move above 30 could indicate a potential upward reversal.

5. Divergence:

Look for divergence between the price and momentum oscillators like the MACD or RSI. If prices are making new highs while the oscillator is not, it could indicate weakening momentum and a potential reversal.

6. Volume Analysis:

An increase in trading volume during a potential reversal often confirms the validity of the reversal.

Volume spikes can indicate strong buying or selling interest.

7. Chart Patterns:

Patterns like "Head and Shoulders" or "Double Tops/Bottoms" can signal trend reversals.

These patterns often form after an extended trend and indicate a shift in market sentiment.

8. Fibonacci Retracement:

Use Fibonacci retracement levels to identify potential reversal points.

Common retracement levels include 38.2%, 50%, and 61.8%.

9. Support and Resistance Levels:

Previous support turning into resistance or vice versa can indicate a trend reversal.

Look for key psychological levels that might act as reversal points.