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

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

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

1. Reversal Indices Chart Patterns

• Double Tops Reversal Indices Chart Patterns

• Double Bottoms Reversal Indices Chart Patterns

• Head and Shoulders Reversal Indices Chart Patterns

• Reverse Head and Shoulders Reversal Indices Chart Patterns

Double Tops

Double tops stock indices chart pattern is a reversal stock indices 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 indices chart pattern forms after an extended move upwards
• Double tops stock indices chart pattern formation indicates that there will be a reversal in the stock indices trading market
• We sell when stock indices price breaks below the neckline; see below for explanation.

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

Double Bottoms

Double bottoms stock indices chart pattern is a reversal stock indices 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 indices chart pattern forms after an extended move downwards
• Double bottoms stock indices chart pattern formation indicates that there will be a reversal in the stock indices trading market
• We buy when stock indices price breaks above the neckline; see below for explanation.

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

Head and Shoulders Indices Chart Pattern

Head and Shoulders stock indices chart pattern is a reversal stock indices 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 indices chart pattern forms after an extended move upwards
• Head and Shoulders stock indices chart pattern formation indicates that there will be a reversal in the stock indices trading market
• Head and Shoulders stock indices 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 indices price breaks below the neckline; see the chart below for explanation.

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

Reverse Head and Shoulders Indices Chart Pattern

Reverse Head and Shoulders stock indices chart pattern is a reversal head and shoulders stock indices 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 indices chart pattern forms after an extended move downwards
• Reverse Head and Shoulders stock indices chart pattern formation indicates that there will be a reversal in the stock indices trading market
• Reverse Head and Shoulders stock indices chart pattern formation resembles is upside-down, thus its name Reverse.
• We buy when stock indices price breaks above the neckline; see the chart below for explanation.

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

Reversal Stock Indices Chart Patterns Tutorials

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

Head and shoulders Stock Indices Chart Patterns and Reverse Head and shoulders Stock Indices Chart Patterns