Definition of Reversal Stocks Chart Patterns

Reversal Stock Patterns confirm the reversal of the stocks market trend once this reversal stocks pattern setup is confirmed.

These reversal stocks chart patterns are formed after extended stock market trend either upward or downward and these reversal stocks chart patterns signal that the stocks market trend is ready to reverse.

1. Reversal Stock Chart Patterns

• Double Top Reversal Stock Chart Patterns

• Double Bottom Reversal Stock Chart Patterns

• Head & Shoulders Reversal Stock Chart Patterns

• Reverse Head & Shoulders Reversal Stock Chart Patterns

Double Tops

Double tops stocks pattern is a reversal stocks pattern that forms after an extended upwards stocks trend. As its name implies, this pattern is made up of two consecutive peaks which are roughly equal, with a moderate trough between.

Summary:

• Double tops stock pattern forms after an extended move upwards
• Double tops stocks chart pattern formation indicates that there will be a reversal in stock market
• We sell when stocks price breaks below the neck line: see below for explanation.

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

Double Bottom

Double bottoms stocks pattern is a reversal stocks pattern that forms after an extended downwards stocks trend. It is made up of two consecutive troughs which are roughly equal, with a moderate peak between.

Summary:

• Double bottom stock trading pattern forms after an extended move downward
• Double bottom stocks chart pattern formation indicates that there will be a reversal in stock market
• We buy when stocks price breaks above the neck line: see below for explanation.

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

Head & Shoulders Stocks Trading Pattern

Head & Shoulders stocks pattern is a reversal stocks chart pattern that forms after an extended Stock Trading upwards stocks trend. It's 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 pattern forms after an extended move upwards
• Head and Shoulders stocks chart pattern formation indicates that there will be a reversal in stock market
• Head and Shoulders stock chart pattern formation resembles head with shoulders thus its name.
• To draw the neck-line we use chart point 1 and point 2 as displayed below. We also extend this line in both directions.
• We sell when stocks price breaks below the neck line: see the chart below for explanation.

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

Reverse Head & Shoulders Stocks Trading Pattern

Reverse Head and Shoulders stocks pattern is a reversal head and shoulders stocks chart pattern that forms after an extended Stock Trading downwards stocks trend. It resembles an upside down head shoulders.

Summary:

• Reverse Head & Shoulders stock trading pattern forms after an extended move downward
• Reverse Head & Shoulders stocks chart pattern formation indicates that there will be a reversal in stock market
• Reverse Head & Shoulders stock chart pattern formation resembles is upside-down, therefore the name Reverse.
• We buy when stocks price breaks above the neck line: see the chart below for explanation.

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

Reversal Stocks Patterns Lessons

Double Top Stocks Patterns & Double Bottom Stock Chart Patterns

Head and shoulders Stocks Patterns and Reverse Head and Shoulders Stocks Chart Patterns