Reversal Patterns

Reversal patterns are best seen on candlestick charts which is a reason why so many day trader or traders in general prefer to look at a candlestick chart of some kind.

Major Reversal Patterns

Let's take a little journey though some of the best
money making reversal patterns.

Knowing these patterns is one thing but having the nerve to play
them is a true skill within itself. A day trader must have nerves of steel.

Our Number One reversal pattern is the Triple Top Reversal Pattern

Triple tops - Triple bottoms - If a stock has reached a point and again and agains showed you it cannot break this point get in and ride it back to where it came from. Chances are it's going to move that way with great force and momentum.

Next Reversal Pattern >>>

Double Tops - Double Bottoms - Less relevent than triple tops but still a major reversal pattern in day trading and other forms of trading. If a point is reached once and a stock returns back a level has been identified in which sellers were no longer present. This is an indication of uncertainty at this level.

Head and Shoulders - Inverse Head And Shoulders - If a stock has reached a point and again and agains showed you it cannot break this point get in and ride it back to where it came from. Chances are it's going to move that way with great force and momentum.

V Shape top - V Shape Bottom - Spike Tops Or Bottoms - A sharp turn around in direction causes these rapid changes that often return to where they came from in a very short period of time.

Rounded Tops - Rounded Bottoms (Saucer Tops and Bottoms) - Shows a gradual change in direction giving a little more time fo an entry or an exit.

See Common Candlestick Reversal Patterns