What Does Reversal Oil Chart Pattern Mean?
Reversal Crude Oil Trading Patterns confirm the reversal of the crude oil market oil trend once this reversal Oil Trading crude oil pattern setup is confirmed.
These reversal Oil Trading crude oil chart patterns are formed after extended oil market oil trend either upward or downward and these reversal crude oil chart patterns signal that the crude oil market trend is ready to reverse.
1. Reversal Crude Oil Trading Chart Patterns
- Double Top Reversal Oil Trading Chart Patterns
- Double Bottom Reversal Oil Trading Chart Patterns
- Head & Shoulders Reversal Oil Trading Chart Patterns
- Reverse Head & Shoulders Reversal Oil Trading Chart Patterns
Double Tops
Double tops crude oil pattern is a reversal crude oil pattern which forms after an extended upwards oil trend. As its name implies, this pattern is made up of 2 consecutive peaks which are roughly equal, with a moderate trough between.
Summary:
- Double tops oil pattern forms after an extended move upward
- Double tops crude oil chart pattern formation indicates that there will be a reversal in crude oil market
- We sell when crude oil price breaks out below the neck-line: see below for the explanation.
Example of Double Tops Reversal Oil Pattern on a Oil Trading Chart
Double Bottom
Double bottom crude oil pattern is a reversal crude oil pattern which forms after an extended downwards oil trend. It is made up of two consecutive troughs which are roughly equal, with a moderate peak between.
Summary:
- Double bottoms crude oil pattern forms after an extended move downward
- Double bottoms crude oil chart pattern formation indicates that there will be a reversal in crude oil market
- We buy when oil trading price breaks out above the neck-line: see below for an explanation.
Example of Double Bottoms Reversal Oil Pattern on a Oil Trading Chart
Head & Shoulders Oil Trading Pattern
Head & Shoulders crude oil pattern is a reversal crude oil chart pattern which forms after an extended Oil Trading upwards oil trend. It is made up of three consecutive peaks, the left shoulder, the head & right shoulder with 2 moderate troughs between the shoulders.
Summary:
- Head and Shoulders oil pattern forms after an extended move upward
- Head and Shoulders crude oil chart pattern formation indicates that there will be a reversal in crude oil market
- Head and Shoulders crude oil pattern formation resembles head with shoulders thus its name.
- To draw the neck-line we use chart point 1 and point 2 as displayed below. We also extend this line in both directions.
- We sell when crude oil price breaks out below the neck-line: see the chart below for explanation.
Example of Head and Shoulders Reversal Oil Pattern on a Oil Trading Chart
Reverse Head & Shoulders Oil Trading Pattern
Reverse Head and Shoulders crude oil pattern is a reversal head and shoulders crude oil chart pattern which forms after an extended Oil Trading downwards oil trend. It resembles an upside down head shoulders.
Summary:
- Reverse Head & Shoulders crude oil trading pattern forms after an extended move downward
- Reverse Head & Shoulders crude oil chart pattern formation indicates that there will be a reversal in crude oil market
- Reverse Head & Shoulders crude oil chart pattern formation resembles upside-down, thus the name Reverse.
- We buy when crude oil trading price breaks-out above neck-line: see the chart below for explanation.
Example of Reverse Head and Shoulders Reversal Oil Pattern on a Oil Trading Chart
Reversal Crude Oil Trading Patterns Lessons
Double Top Crude Oil Chart Patterns & Double Bottoms Oil Trading Chart Patterns
