Reversal trading can be highly rewarding but requires skill and precision. Spotting a trend reversal involves identifying signs that the current trend is losing momentum. Look for patterns like double tops, double bottoms, or head and shoulders, which often signal reversals. Use technical indicators like the Moving Average Convergence Divergence (MACD) or the Average True Range (ATR) to confirm these setups. Pay attention to key support and resistance levels, as price often reverses near these areas. Be cautious and wait for clear confirmation before entering a reversal trade, as false signals are common. Reversals can be highly profitable, but they also carry higher risks, so always manage your position size and use stop-loss orders.