Trend Reversal Patterns

This pattern is represented by three tops of the market price located at different levels: two lower tops (shoulders) aside and one highest top (head) in between. There is also a neckline ( support) connecting pattern’s lows.

The inverse head and shoulders graphical price pattern serves as a sign of trend reversal and is expected to be followed by change in direction of the asset’s price. It is typically formed in a developed downtrend.

The double top pattern is characterized by two parallel horizontal lines representing support and resistance levels which respectively connect two most recent local highs of the price and a low, holding a certain bunch of price fluctuations within. The price reverses twice at resistance levels under investor consideration the asset is overpriced there.

The double bottom price pattern is believed to be a sign of existing downtrend reversal. Prices are expected to begin a rally following its formation, while the longer it takes for the pattern to be formed the more reliable it is.

The triple top is a price pattern generally formed in an uptrend suggesting following reversal and a drop in prices. It is considered more significant than the double top pattern.

The triple bottom price pattern it typically formed in a downtrend being a sign of a following reversal and a rise in prices. It is considered more significant than the double bottom pattern.

The brilliant graphical price pattern serves for existing trend reversal confirmation in case of its occurrence on the chart. Traditionally it appears in an uptrend.