One of the most powerful secrets behind consistent trading profitability isn’t about catching every trend — it’s about identifying when a trend is about to reverse. This is where Reversal Patterns come in — offering high-probability entries with tight stop-losses and huge reward potential.
Here are 6 of the most reliable reversal patterns that every trader should master:
🔴 1. Double Top – A strong bearish reversal.
When price tests a resistance level twice but fails to break through, this usually signals a bullish-to-bearish reversal. Once the neckline is broken, expect a strong sell-off.
🟢 2. Double Bottom – The bullish twin of the Double Top.
Price tests the support twice and fails to break down, indicating that sellers are exhausted. Once the neckline breaks — 🚀 the 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, this usually leads to a sharp decline.
🔼 4. Inverse Head & Shoulders – A gem of a bullish reversal.
Just like Head & Shoulders, but upside down. Once the neckline is broken, the bulls take over and the price moves sharply higher.
📉 5. Ascending Wedge – Looks bullish, but it’s a trap!
Even though the price is rising, momentum is weakening. A breakout from the wedge usually results in a strong downtrend. Don't be fooled by the upward slope!
📈 6. Descending Wedge – The ultimate bull trap breaker.
The price narrows as it falls, signaling the weakness of selling pressure. Once it breaks out — boom 💥 — the bullish breakout begins.
💡 Why these patterns matter:
✅ Easy to identify in any time period
✅ Clear entry and stop-loss zones
✅ Works best with volume and trend confirmation
✅ Used by professional traders, institutions and algorithms alike
📌 Whether you're a day trader or holding long-term positions, mastering these 6 patterns can dramatically improve your entry timing and risk management.
💬 What's your favorite pattern?
Leave a comment 👇 and let's talk about setups!
