Reversal day
Volume Profile Analysis glossary · Auction Theory & Market Profile (TPO)
Definition
A session that opens with directional conviction in one direction, then reverses decisively and closes at the opposite end of the range.
Reversal day in plain English
A reversal day is a trading day that starts off looking totally convinced it's going one way — say, prices climbing hard all morning — and then completely flips, ending near the opposite end of the day's range. The story the market told at the open turns out to be the opposite of how it finishes. It's like a movie that spends an hour making you sure the hero will win, then delivers a twist ending where they lose. Traders watch for these because a decisive flip often signals that the crowd's earlier conviction was wrong, hinting the trend may change direction.
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