The 4 Reversal Stock Indices Chart Patterns in Indices Trading Explained with Examples
Reversal Stock Indices Chart Patterns confirm the reversal of the stock indices trading market indices trend once this reversal Indices Trading stock indices chart pattern setup is confirmed.
These reversal Indices Trading stock indices patterns are formed after extended stock indices market indices trend either upwards or downward & these reversal stock indices chart patterns signal that the stock indices trading market indices trend is ready to reverse.
1. Reversal Stock Indices Chart Patterns
- Double Tops Reversal Patterns
- Double Bottom Reversal Chart Patterns
- Head and Shoulders Reversal Patterns
- Reverse Head and Shoulders Reversal Patterns
Double Tops
Double tops stock indices pattern is a reversal stock indices chart pattern which forms after an extended upwards indices trend. As its name implies, this pattern is made up of two consecutive peaks which are roughly equal, with a moderate trough between.
Summary:
- Double tops stock indices trading pattern forms after an extended move upward
- Double tops stock indices chart pattern formation indicates that there will be a reversal in stock indices trading market
- We sell when stock indices price breaks below the neck line point: see below for explanation.
Example of Double Tops Reversal Chart Pattern on a Indices Chart
Double Bottom
Double bottoms stock indices pattern is a reversal stock indices pattern which forms after an extended downward indices trend. It is made up of two consecutive troughs which are roughly equal, with a moderate peak between.
Summary:
- Double bottom stock indices trading chart pattern forms after an extended move downward
- Double bottom stock indices chart pattern formation indicates that there will be a reversal in stock indices trading market
- We buy when stock indices price breaks above the neck line point: see below for explanation.
Example of Double Bottoms Reversal Chart Pattern on a Indices Chart
Head & Shoulders Trading Pattern
Head and Shoulders stock indices pattern is a reversal stock indices pattern which forms after an extended Indices upwards trend. It's made up of three consecutive peaks, the left shoulder, head and the right shoulder with two moderate troughs between the shoulders.
Summary:
- Head & Shoulders stock indices trading pattern forms after an extended move upward
- Head & Shoulders stock indices chart pattern formation indicates that there will be a reversal in stock indices trading market
- Head & Shoulders stock indices chart pattern formation resembles head with shoulders thus its name.
- To draw the neck-line we use chart point 1 and point 2 as displayed below. We also extend this line in both directions.
- We sell when stock indices price breaks below the neck line point: see the chart below for explanation.
Examples of Head and Shoulders Reversal Chart Pattern on a Indices Chart
Reverse Head & Shoulders Trading Pattern
Reverse Head & Shoulders stock indices pattern is a reversal head and shoulders stock indices pattern which forms after an extended Indices Trading downward trend. It resembles an upside down head shoulders.
Summary:
- Reverse Head & Shoulders stock indices trading chart pattern forms after an extended move downward
- Reverse Head & Shoulders stock indices chart pattern formation indicates that there will be a reversal in stock indices trading market
- Reverse Head & Shoulders stock indices chart pattern formation resembles is upside-down, therefore the name Reverse.
- We buy when stock indices price breaks above the neck line point: see the chart below for explanation.
Example of Reverse Head and Shoulders Reversal Chart Pattern on a Indices Chart
Reversal Stock Indices Chart Patterns Lessons
Double Tops Stock Indices Patterns & Double Bottom Chart Patterns
