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The 4 Reversal Stock Indexes Chart Patterns in Indices Trading Explained with Examples


Reversal Indices Trading Chart Patterns confirm the reversal of the stock indexes trading market indices trend once this reversal Indices Trading stock indexes chart pattern setup is confirmed.


These reversal Indices Trading stock indexes chart patterns are formed after extended stock indices market indices trend either upward or downwards and these reversal stock indexes chart patterns signal that the stock indexes trading market indices trend is ready to reverse.


1. Reversal Indices Trading Chart Patterns


  • Double Tops Reversal Indices Trading Chart Patterns


  • Double Bottoms Reversal Indices Trading Chart Patterns


  • Head and Shoulders Reversal Indices Trading Chart Patterns


  • Reverse Head and Shoulders Reversal Indices Trading Chart Patterns


Double Tops

Double tops stock indexes chart pattern is a reversal stock indexes chart pattern that forms after an extended upward indices trend. As its name implies, this formation is made up of two consecutive peaks that are roughly equal, with a moderate trough in between.

Summary:


  • Double tops stock indexes chart pattern forms after an extended move upwards

  • Double tops stock indexes chart pattern formation indicates that there will be a reversal in the stock indexes trading market

  • We sell when stock indexes price breaks below the neckline; see below for explanation.

Example of Double Tops Reversal Indices Trading Chart Pattern on a Indices Trading Chart

Example of Double Tops Reversal Indices Trading Chart Pattern on a Indices Trading Chart



Double Bottoms

Double bottoms stock indexes chart pattern is a reversal stock indexes chart pattern that forms after an extended downward indices trend. It is made up of two consecutive troughs that are roughly equal, with a moderate peak in between.


Summary:


  • Double bottoms stock indexes chart pattern forms after an extended move downwards

  • Double bottoms stock indexes chart pattern formation indicates that there will be a reversal in the stock indexes trading market

  • We buy when stock indexes price breaks above the neckline; see below for explanation.

Example of Double Bottoms Reversal Indices Trading Chart Pattern on a Indices Trading Chart

Example of Double Bottoms Reversal Indices Trading Chart Pattern on a Indices Trading Chart



Head and Shoulders Indices Trading Chart Pattern

Head and Shoulders stock indexes chart pattern is a reversal stock indexes chart pattern that forms after an extended Indices Trading upward indices trend. It is made up of three consecutive peaks, the left shoulder, the head and the right shoulder with two moderate troughs between the shoulders.

Summary:


  • Head and Shoulders stock indexes chart pattern forms after an extended move upwards

  • Head and Shoulders stock indexes chart pattern formation indicates that there will be a reversal in the stock indexes trading market

  • Head and Shoulders stock indexes chart pattern formation resembles head with shoulders thus its name.

  • To draw the neckline we use chart point 1 and point 2 as shown below. We also extend this line in both directions.

  • We sell when stock indexes price breaks below the neckline; see the chart below for explanation.

Example of Head and Shoulders Reversal Indices Trading Chart Pattern on a Indices Trading Chart

Example of Head and Shoulders Reversal Indices Trading Chart Pattern on a Indices Trading Chart



Reverse Head and Shoulders Indices Trading Chart Pattern

Reverse Head and Shoulders stock indexes chart pattern is a reversal head and shoulders stock indexes chart pattern that forms after an extended Indices Trading downward indices trend. It resembles an upside-down head shoulders.


Summary:


  • Reverse Head and Shoulders stock indexes chart pattern forms after an extended move downwards

  • Reverse Head and Shoulders stock indexes chart pattern formation indicates that there will be a reversal in the stock indexes trading market

  • Reverse Head and Shoulders stock indexes chart pattern formation resembles is upside-down, thus its name Reverse.

  • We buy when stock indexes price breaks above the neckline; see the chart below for explanation.

Reverse Head and shoulders Indices Trading Chart Pattern in Indices Trading

Example of Reverse Head and Shoulders Reversal Indices Trading Chart Pattern on a Indices Trading Chart



Reversal Stock Indexes Chart Patterns Tutorials

Double Tops Stock Indexes Chart Patterns and Double Bottoms Indices Trading Chart Patterns


Head and shoulders Stock Indexes Chart Patterns and Reverse Head and shoulders Stock Indexes Chart Patterns

 

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