How Do I Analyze Reversal Chart Pattern?

A reversal setup is a pattern formation that signals the current market trend may reverse once these reversal pattern setup is confirmed.

The reversal pattern setup shows that momentum of the current trend is declining & therefore should the reversal pattern setup be completed then the market trend might reverse and begin moving in opposite direction.

If a reversal pattern setup forms in an upwards trend then traders should wait for the pattern to be confirmed before opening trades in opposite direction. Once a reversal pattern setup is confirmed by the price moving below the support level of the reversal pattern setup then traders can consider this bearish reversal pattern setup to be confirmed signaling that the market trend has changed from an upwards trend to a downward trend.

If a reversal pattern setup forms in a downwards trend then traders should wait for the pattern to be confirmed before opening trades in opposite direction. Once a reversal pattern setup is confirmed by the price moving above the resistance level of the reversal pattern setup then traders can consider this bullish reversal pattern setup to be confirmed signaling that the market trend has changed from a downward trend to a downward trend.

How Do You Analyze Reversal Pattern?

How Do I Analyze Reversal Chart Pattern?