Forex School Intermediate Level: Introduction to Reversal Patterns



Reversal patterns are those patterns after which will follow change in the trend . Those patterns occur at the end of a trend. Before we start to look each one of them we must explain some basic rules:

 

  • Chart pattern must be preceded by clear movement. It is necessary for reversal pattern to be at the end phase of clearly expressed trend movement – uptrend or downtrend
  • Bigger the pattern is, bigger movement will be the afterward
  • The more time it takes the pattern to be build, the more valid will be
  • First signal for reversal is breakout the trend line
  • It takes more time for reversal than continuous patterns
  • Not always target on 100% will be fulfilled

 

In this section we will cover the basics of reversal patterns.

Reversal patterns are:

 





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