When I started trading, I was entering trades randomly. Sometimes I made profits, but most of the time, I lost because I didnโt know where the trend was about to end.
Then I came across Reversal Patterns โ powerful signals that warn when the market is about to flip direction. Once I learned these, my trading completely changed. Instead of chasing moves, I started catching reversals at the perfect entry zones.
Hereโs what I mastered
1๏ธโฃ Double Top
Looks like the letter โMโ.
Price tries to break a resistance twice but fails.
Signals the end of an uptrend โ bearish reversal.
๐ I now short when I see this and place my stop just above the resistance.
2๏ธโฃ Double Bottom
Looks like the letter โWโ.
Price tests a support level twice and bounces back strongly.
Signals the end of a downtrend โ bullish reversal.
๐ I go long when this forms, targeting the neckline breakout.
3๏ธโฃ Head & Shoulders
A peak (shoulder), followed by a higher peak (head), then another lower peak (shoulder).
Once the neckline breaks, it confirms a bearish reversal.
๐ Perfect setup to short at the breakdown.
4๏ธโฃ Inverse Head & Shoulders
Opposite of Head & Shoulders.
Appears at the bottom after a downtrend.
Once neckline breaks, it confirms bullish reversal.
๐ Great for catching the bottom before a strong rally.
5๏ธโฃ Rising Wedge
Price keeps rising but candles get squeezed in an upward-slanting wedge.
Shows weak buying pressure โ bearish reversal likely.
๐ I prepare shorts when the wedge breaks down.
6๏ธโฃ Falling Wedge
Price falls inside a downward-slanting wedge.
Sellers get weaker, bulls prepare for reversal.
Breakout usually leads to a bullish run.
๐ I long the breakout with high confidence.
๐ฅ Why this strategy works so well:
Gives early warning signs before big moves.
Works across all timeframes (scalping, swing, even daily charts).
Allows tight stop-loss placement with wide profit potential.
Once I mastered these six patterns, I stopped gambling and started trading with a plan. I no longer chased the market โ instead, I let the patterns tell me when to enter. Since then, Iโve rarely lost money on reversal trades.
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