Reversal Patterns
Reversal patterns in trading evaluate the performance and outcomes of trading strategies by identifying price formations that signal a potential change in market direction. Here are some of the most commonly used reversal patterns:
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Reversal patterns act like market turning signals, alerting traders to potential trend shifts and unlocking opportunities for timely action!
- Bullish Patterns: Suggest a reversal from a downtrend to an uptrend, including patterns like inverse head and shoulders or Double Bottom.
- Bearish Patterns: Indicate a potential shift from an uptrend to a downtrend, such as Head and Shoulders or Double Top.