🐻 Bearish Reversal Patterns (Red - Potential Downtrend)
1️⃣ Bearish Double Top
- Two peaks at nearly the same level, followed by a breakdown below support.
- Signals a reversal from an uptrend to a downtrend.
2️⃣ Bearish Head & Shoulders
- Three peaks, with the middle one (head) being the highest.
- A break below the neckline confirms a bearish trend.
3️⃣ Bearish Rising Wedge
- Price moves within a contracting upward-sloping range.
- Breakdown below the lower trendline signals a bearish move.
4️⃣ Bearish Triple Top
- Three peaks at nearly the same level, followed by a breakdown.
- Confirms a bearish trend once support is broken.
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🐂 Bullish Reversal Patterns (Green - Potential Uptrend)
1️⃣ Bullish Double Bottom
- Two troughs at nearly the same level, followed by a breakout above resistance.
- Indicates a reversal from a downtrend to an uptrend.
2️⃣ Bullish Head & Shoulders (Inverse H&S)
- Three troughs, with the middle one (head) being the lowest.
- A breakout above the neckline confirms a bullish trend.
3️⃣ Bullish Rising Wedge
- Price moves within a contracting downward-sloping range.
- Breakout above the upper trendline signals an uptrend.
4️⃣ Bullish Triple Bottom
- Three troughs at nearly the same level, followed by a breakout.
- Confirms a bullish trend once resistance is broken.
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📈 Trading Strategy Considerations
- Entry Point: After a confirmed breakout/breakdown.
- Stop Loss: Placed below/above support or resistance.
- Target: Based on the pattern’s height projected from the breakout point.
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