🔁 Reversal Patterns – Spot a Potential Trend Change
1️⃣ Double Top – Bearish signal: Two peaks at the same level before a downward break.
2️⃣ Head & Shoulders – Bearish setup with three peaks; breaks neckline to confirm reversal.
3️⃣ Rising Wedge – Upward narrowing range, often ends in a bearish breakdown.
4️⃣ Double Bottom – Bullish signal: Two troughs at support, leading to a breakout.
5️⃣ Inverse Head & Shoulders – Bullish counterpart, breaking above neckline confirms trend shift.
6️⃣ Falling Wedge – Bullish reversal from a downward-sloping range.
---
▶️ Continuation Patterns – Trend Likely to Continue
1️⃣ Falling Wedge – Bullish continuation: price consolidates before upward move.
2️⃣ Bullish Rectangle – Sideways range that breaks upward.
3️⃣ Bullish Pennant – Mini triangle after an uptrend, leads to further upside.
4️⃣ Rising Wedge – Bearish continuation: price tightens upward before breaking down.
5️⃣ Bearish Rectangle – Sideways range that breaks downward.
6️⃣ Bearish Pennant – Small triangle after a drop, usually continues lower.
---
🔀 Bilateral Patterns – Breakout Could Go Either Way
1️⃣ Ascending Triangle – Rising lows vs. horizontal resistance; breakout may go either way.
2️⃣ Descending Triangle – Lower highs vs. horizontal support; breakout depends on momentum.
3️⃣ Symmetrical Triangle – Neutral pattern with converging trendlines; breakout is near.
---
Trader Tips:
✅ Reversal = Trend may flip
✅ Continuation = Trend likely persists
✅ Bilateral = Prepare for breakout either way
Master these patterns to improve your entries, stop-losses, and profit targets.
Found this valuable? Drop a like, comment, and share. Let’s grow together!
