Definition of Reversal Chart Patterns

Reversal Patterns confirm the reversal of the commodities trading market commodity trend once this reversal Commodity Trading chart pattern setup is completed.

These reversal Commodity Trading chart patterns are formed after extended commodity market trend either upward or downward and these reversal chart patterns signal that the commodities trading market commodity trend is ready to reverse.

1. Reversal Chart Patterns

• Double Top Reversal Chart Patterns

• Double Bottoms Reversal Patterns

• Head & Shoulders Reversal Chart Patterns

• Reverse Head & Shoulders Reversal Chart Patterns

Double Tops

Double tops commodities pattern is a reversal chart pattern that is formed after an extended upward commodities trend. As its name implies, this pattern is made up of 2 consecutive peaks that are roughly equal, with a moderate trough between.

Summary:

• Double tops commodity trading pattern forms after an extended move upward
• Double tops commodities pattern formation indicates that there will be a reversal in commodities trading market
• We sell when price breaks out below neck-line: see below for explanation.

Example of Double Tops Reversal Chart Pattern on a Commodity Trading Chart

Double Bottom

Double bottom commodities pattern is a reversal chart pattern that is formed after an extended downward commodities trend. It is made up of 2 consecutive troughs that are roughly equal, with a moderate peak between.

Summary:

• Double bottoms commodity trading pattern forms after an extended move downward
• Double bottoms commodities pattern formation indicates that there will be a reversal in commodities trading market
• We buy when price breaks out above the neck line: see below for the explanation.

Example of Double Bottoms Reversal Chart Pattern on a Commodity Trading Chart

Head and Shoulders Trading Pattern

Head & Shoulders pattern is a reversal chart pattern which forms after an extended Commodity upward trend. It's made up of three consecutive peaks, the left shoulder, head and right shoulder with two moderate troughs between the shoulders.

Summary:

• Head & Shoulders pattern forms after an extended move upward
• Head and Shoulders pattern formation indicates that there will be a reversal in commodities trading market
• Head and Shoulders chart pattern formation resembles head with shoulders thus its name.
• To draw the neck-line we use chart point 1 & point 2 as shown below. We also extend this line in both directions.
• We sell when price breaks below the neck line: see the chart below for explanation.

Example of Head & Shoulders Reversal Chart Pattern on a Commodity Trading Chart

Reverse Head & Shoulders Trading Pattern

Reverse Head & Shoulders pattern is a reversal head & shoulders chart pattern which forms after an extended Commodity Trading downwards trend. It resembles an upside-down head shoulders.

Summary:

• Reverse Head and Shoulders commodity trading pattern forms after an extended move downward
• Reverse Head and Shoulders pattern formation indicates that there will be a reversal in commodities trading market
• Reverse Head and Shoulders chart pattern formation resembles is upside-down, therefore the name Reverse.
• We buy when price breaks above the neck line: see the chart below for explanation.

Example of Reverse Head and Shoulders Reversal Chart Pattern on a Commodity Trading Chart

Reversal Patterns Guides

Double Top Chart Patterns & Double Bottom Chart Patterns

Head and shoulders Commodities Chart Patterns & Reverse Head and Shoulders Chart Patterns