How to Interpret Reversal Patterns

Trade Reversal Setup Patterns

Reversal Chart Patterns are used to confirm the reversal of the trend direction - once this reversal chart pattern setup is confirmed.

How to Analyze Reversal Patterns

Reversal chart patterns are formed after an extended trend move either upward or downwards - these reversal patterns signal that the market trend direction is about to reverse.

Types of Reversal Patterns

Double Tops Reversal Chart Pattern

Double Bottoms Reversal Chart Pattern

Head & Shoulders Reversal Setup Pattern

Reverse Head and Shoulders Reversal Pattern

Double Tops Pattern Analysis

Double tops setup is a reversal chart pattern that's formed after an extended upward trend move. Double tops pattern setup is made up of two consecutive price peaks that are roughly equal, with a moderate trough in between these two price peaks - double tops.

How to Analyze Double Top Reversal Pattern

Double tops chart pattern is considered to be complete once the price makes the second peak and then penetrates the lowest price point between the price highs (double tops), this lowest price point is called the neck line. A sell signal from this double tops setup is generated when the price breaks and moves below the neck line.

In trading the double tops chart pattern is used as an early signal that a upward trend is about to reverse. However, double tops chart pattern is only confirmed once the neck line is broken & the price moves below the neck-line. Neckline is just another name for the last price support zone formed on the chart.

How to Analyze Reversal Patterns - How to Interpret Reversal Trading Chart Setups

How to Interpret Reversal Setup Patterns?

Double Bottoms Pattern Analysis

Double bottoms setup is a reversal chart pattern that's formed after an extended downwards trend move. Double bottoms pattern setup is made up of two consecutive price troughs that are roughly equal, with a moderate peak in between the price troughs (double bottoms).

How to Analyze Double Bottom Reversal Patterns

Double bottoms chart pattern is considered to be complete once the price makes the second price low and then penetrates the highest price point between the two price lows (double bottoms), the highest price point between the double bottom is called the neck-line. The buy signal from this double bottom chart pattern is generated when price breaks above the neck-line & moves upwards above the neck line.

In trading the double bottoms chart pattern is an early signal that the downwards trend is about to reverse. Double bottoms chart pattern is only considered complete once the neckline is broken - price moves above the neckline. In this Double bottoms chart pattern the neck line is the price resistance level. Once this price resistance area is broken the market price will move upward.

How to Interpret Reversal Patterns - How to Analyze Reversal Trading Chart Setups

How to Interpret Reversal Setup Patterns?

Head and Shoulders Pattern Analysis

Head & Shoulders setup is a reversal chart pattern that's formed after an extended upwards trend. Head and Shoulders chart pattern is made up of three consecutive price peaks, the left shoulder, the head & the right shoulder with two moderate price troughs between the shoulders.

How to Analyze Head & Shoulders Reversal Patterns

Head & Shoulders chart pattern is considered to be complete once the price penetrates & moves below the neck line, the neck line is plotted by joining the two prices troughs between the shoulders.

Traders will place their sell stop pending orders just below the neckline - when price moves below the neckline a sell signal is generated by this head and shoulders stock chart pattern.

How to Read Reversal Patterns - How to Interpret Reversal Chart Setups

How to Read Reversal Setup Patterns - How to Trade Reversal Patterns?

Reverse Head and Shoulders Pattern Analysis

Reverse Head and Shoulders pattern setup is a reversal chart pattern that's formed after an extended downward trend. Reverse Head & Shoulders chart pattern resembles an upside down head shoulders stock chart pattern.

How to Interpret Reverse Head & Shoulders Reversal Patterns

Reverse Head and Shoulders chart pattern is considered to be complete once the price penetrates and moves above the neckline, the neck line is plotted by joining the two price peaks between the reverse shoulders.

Traders will place their buy stop pending orders just above the neck line - when the price moves above the neck line a buy signal is generated by this reverse head and shoulders pattern.

How to Read Reversal Chart Setups - How to Analyze Reversal Patterns

How to Read Reversal Patterns - How to Trade Reversal Setup Patterns?

Trade and Interpret Reversal Patterns - Reversal Chart Patterns Technical Analysis

How to Analyze Reversal Chart Patterns

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