Reversal patterns indicate changes in a current direction called a trend. The Trend is when buyers are consistently greater than the sellers for a period of time that can be charted and seen on a graph. This graph allows potential profit takers an opportunity to jump in and ride the trend then jump out and take profit.

 

Reversal patterns are essential in helping day traders that are in positions know when to get out. The can also reveal some great entry points.

Triple Tops - Triple Bottoms - Double Tops - Double Bottoms - V Shaped Top (Spike)V Shaped Bottoms (Spike) - Rounded Bottoms - Rounded Tops

1. Reversal patterns can reveal a lot. They show current feelings towards a stock and how those feelings are changing.

2. When one detaches them self from predicting where a stock will go emotionally one can surrender to the candlesticks and let them decide. Detachment is a good way to practice.

Day Trading Patterns Fibonacci Theory - Learn about the theory of wave of momentum that are opposed by counter waves that retrace a certain amount.

Day Trading Patterns Elliott Wave Theory - Learn about Elliott Wave Theory is a theory in financial markets that waves of buying and selling form patterns. The patterns are 5 points on the way up and 3 to retrace.

 

 

Day Trading Candlestick Reversal Patterns - Learn about Elliott Wave Theory is a theory in financial markets that waves of buying and selling form patterns. The patterns are 5 points on the way up and 3 to retrace.