How is an exothermic reaction identified on a potential energy diagram?

Energy diagrams are use to depict the energy changes that occur during a chemical reaction. There are two types of reaction based on the energy change, these are exothermic and endothermic reactions. In endothermic reactions energy are gained while in exothermic reactions energy are lost to the environment. To identify an exothermic reaction on a potential energy diagram, one has to compare the potential energy of the reactants and the products. If the potential energy of the product is less than that of the reactants, the reaction is exothermic.