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A major trend reversal (MTR) is how a real trend change announces itself in Al Brooks' price action framework. It is not a single bar — it is a sequence: a break of the trend line, a test back toward the old extreme, and then a reversal signal. Trading the sequence, not a guess, is what keeps you out of countless failed reversals. Al Brooks price action is a trading methodology; the logic below is implemented in our own original code.
What is a major trend reversal?
An MTR is a change in the market's effective direction that is large enough to produce more than one tradable swing the other way. It is "major" because the always-in direction actually flips — not just a deep pullback that resumes the old trend.
What is the three-step MTR sequence?
First, price breaks the trend line, showing the trend is weakening. Second, it tests back toward the old extreme — making either a higher low (in a bottom) or a slightly higher high that fails. Third, a reversal signal bar fires, ideally as a second entry. All three in order is what makes the setup high-probability.
What makes a reversal "major" rather than a pullback?
The key test is whether the always-in direction flips. A pullback interrupts a trend but resumes it; an MTR ends it and starts a new one with at least two legs. A trend-line break followed by a failed test of the extreme is the clearest evidence that control has changed hands.
How does MyTrading help you trade MTRs?
The Al Brooks indicator tracks the trend line, swing extremes and second-entry counts, so the components of an MTR line up visually. It weights reversal signals more carefully than with-trend signals, because reversals against a strong trend need more confirmation.
Start using it
Open the Al Brooks price action indicator, or see the full Al Brooks trading journal. Project targets with the measured move calculator.
This article explains Al Brooks' price-action concepts in our own words and does not reproduce any book text or images. Last updated: 2026-06.