How Do You Draw Reversal Chart Pattern?

A reversal setup is a pattern formation that signals the current market trend might reverse once these reversal pattern is completed.

The reversal setup portrays that the momentum of the current trend is declining & therefore should the reversal pattern be confirmed then the market trend may reverse & begin heading in the opposite market direction.

If a reversal pattern forms in an upwards trend then traders should wait for the pattern to be confirmed before opening trades in the opposite market direction. Once a reversal pattern is confirmed by the price moving below the support level of the reversal pattern then traders can consider this bearish reversal pattern to be confirmed signaling that the market trend has changed from an upwards trend to a downwards trend.

If a reversal pattern forms in a downwards trend then traders should wait for the pattern to be confirmed before opening trades in the opposite market direction. Once a reversal pattern is confirmed by the price moving above the resistance level of the reversal pattern then traders can consider this bullish reversal pattern to be confirmed signaling that the market trend has changed from a downwards trend to a downwards trend.

How to Interpret Reversal Chart Setup - How to Interpret Bullish Reversal Chart Pattern

Interpret Bullish Reversal Pattern

How to Analyze Reversal Chart Trading Setup - How to Analyze Bullish Reversal Chart Pattern

Interpret Bullish Reversal Chart Pattern

More Tutorials and Lessons:

Trade Gold Trading

How Do You Draw Reversal Chart Pattern?