One of the most powerful secrets behind consistent profitability in trading isn't about catching every trend — it's about spotting when a trend is about to reverse. This is where Reversal Patterns step in — giving you high-probability entries with tight stop-losses and massive reward potential.
Here are 6 of the most reliable reversal patterns every trader must master:
🔴 1. Double Top – A strong bearish reversal.
When the price tests a resistance level twice but fails to break through, it often signals a reversal from bullish to bearish. Once the neckline is broken, expect a strong sell-off.
🟢 2. Double Bottom – The bullish twin of the Double Top.
Price tests support twice and fails to break lower, indicating sellers are exhausted. Once neckline breaks — 🚀 bullish trend begins.
🔻 3. Head & Shoulders – One of the strongest bearish setups.
It consists of a peak (shoulder), a higher peak (head), and another lower peak (shoulder). Once the neckline is broken, it often leads to a sharp decline.
🔼 4. Inverse Head & Shoulders – A bullish reversal gem.
Just like the Head & Shoulders but upside down. Once the neckline is broken, bulls take over and price moves sharply up.
📉 5. Rising Wedge – Looks bullish, but it's a trap!
Even though the price is rising, momentum weakens. A breakdown from the wedge usually results in a strong downtrend. Don’t be fooled by the upward slope!
📈 6. Falling Wedge – The ultimate bullish trap-breaker.
Price narrows as it falls, signaling weakening selling pressure. Once it breaks out — boom 💥 — bullish breakout begins.
💡 Why These Patterns Matter:
✅ Easy to spot on any timeframe
✅ Clear entry and stop-loss zones
✅ Works best with volume and trend confirmation
✅ Used by pro traders, institutions, and algos alike
📌 Whether you're day trading or holding longer-term positions, mastering these 6 patterns can dramatically improve your entry timing and risk management.
💬 Which one is your favorite pattern?
Drop a comment 👇 and let’s talk setups!