TRIPLE TOP REVERSAL

TRIPLE TOP REVERSAL is a bearish reversal pattern, there are three equal highs with a support break.

Step 1-Prior Trend: There is an uptrend.

Step 2-Three Highs: all three highs are nearly same, establishing a resistance.

Step 3-Support Break: a support is broken the we have a reversal patterns.

Step 4-Support Turns Resistance: Broken support becomes potential resistance.

ROUNDING BOTTOM

ROUNDING BOTTOM (saucer bottom) is a reversal pattern, a long consolidation period turning from a bearish bias to a bullish bias. 

Step 1-Prior Trend: There must be a low of a rounding bottom. 

Step 2-Decline: The decline leads to the low of the pattern. 

Step 3-Low: The low can resemble a "V" bottom, but not too sharp. 

Step 4-Advance: The advance of the lows makes the right half of the pattern, if the advance is too sharp, the validity of a rounding bottom may be in question. 

Step 5-Breakout: If the pattern breaks above the reaction high of the beginning of the decline, the bullish confirmed. 

RISING WEDGE

RISING WEDGE is a bearish pattern, wide at the bottom and narrower as prices move higher. The price action forms a cone sloping up as the reaction of highs and lows converge, there is no definitive slope and no bias. If the support is broken then we have a pattern. The rising wedge slopes up with the prevailing trend. 

Step 1-Prior Trend: The rising wedge  forms after an extended advance. 

Step 2-Upper Resistance Line: At least two highs to form the upper resistance line. The later high is higher than the former high.

Step 3-Lower Support Line: At least two lows to create the lower support line, the later low is higher than the former low.

Step 4-Contraction: The upper resistance line and lower support line make a cone.

Step 5-Support Break: Support break: The support line is broken to confirm the pattern.

FALLING WEDGE

FALLING WEDGE is a bullish pattern, wide at the top and narrower as prices move lower. The price action forms a cone sloping down as the reaction of highs and lows converge, there is no definitive slope and no bias. If the resistance is broken then we have a pattern. The falling wedge slopes down with the prevailing trend. 

Step 1-Prior Trend: the falling wedge  forms after an extended downtrend.

Step 2-Upper Resistance Line: At least two highs to create the upper resistance line. The later high is lower than the former high.

Step 3-Lower Support Line: At least two  lows to create the lower support line. The later low is lower than the former low.

Step 4-Contraction: The upper resistance line and lower support line make a cone.

Step 5-Resistance Break: the resistance line is broken to confirm the pattern.

HEAD AND SHOULDERS BOTTOM (REVERSAL)

The pattern contains three successive troughs with the middle trough (head) being the deepest and the two outside troughs (shoulders) being shallower, the two shoulders is equal in height, the highs create a neckline (resistance level).

Step 1-Prior Trend: there s a prior downtrend.

Step 2-Left Shoulder: The left shoulder forms a trough in a downtrend, after that price increases. The high of the decline remains below trend line.

Step 3-Head: a decline begins from the high of the left shoulder to create the low point of the head, after that price goes up to make the second point of the neckline, the second point breaks the downtrend line.

Step 4-Right Shoulder: Price goes down from the high of the head (neckline) to make the right shoulder, the peak of the right shoulder is higher than the head  and in the same line with the left shoulder, the advance from the low of the right shoulder breaks the neckline  the pattern is complete.

Step 5-Neckline: The neckline connects the highs of the left and right shoulder.  The slope of the neckline decide the pattern.

Step 6-Neckline Break: The neckline broken, the pattern is complete.

Step 7-Resistance Turned Support  Resistance is broken, it turn into support.

HEAD AND SHOULDERS TOP (REVERSAL)

A Head and Shoulders reversal pattern contains three successive peaks with the middle peak (head) being the highest and the two outside peaks (shoulders) being low and nearly equal. The lows of each peak is a neckline (support level).

Step 1-Prior Trend: There is a prior uptrend.

Step 2-Left Shoulder: The left shoulder forms a peak in an uptrend, after that price declines. The low of the decline usually remains above the trend line.

Step 3-Head: An advance takes place from the low of the left shoulder to create the top of the head, after that price goes down to make the second point of the neckline, the second point usually breaks the uptrend line.

Step 4-Right Shoulder: Price goes up from the low of the head to make the right shoulder, the peak of the right shoulder is lower than the head and in the same line with the left shoulder, price goes down from the peak of the right shoulder and break the neckline.

Step 5-Neckline: The neckline connects the low points of the left and right shoulders. The slope of the neckline decide the pattern.

Step 6-Neckline Break: The neckline broken, the pattern is complete.

Step 7-Support Turned Resistance: support is broken, it turns into resistance.

DOUBLE BOTTOM REVERSAL

The DOUBLE BOTTOM REVERSAL is a bullish reversal pattern, there are two consecutive troughs that are roughly equal, a moderate peak between the two troughs, it gives a signal that at least an intermediate change in trend from bearish to bullish if a key resistance is broken.

The process of a double bottom reversal pattern is as follows:

Step 1-Prior trend: several down bars appear.

Step 2-The first trough: The lowest point takes place.

Step 3-Peak: An advance takes place, the range is from 10 to 20% as compared to the first trough.

Step 4-The second trough: Price goes down, there is a support of the first trough, price testing takes place around the support level the support level must be reconfirmed.

Step 5-Advance from the second trough with one or two gaps

Step 6-Resistance from the peak Break: If the resistance from the peak level broken, the double bottom pattern is complete.

Step 7-Resistance becomes  support: The broken resistance now can becomes a potential support.

DOUBLE TOP REVERSAL

The DOUBLE TOP REVERSAL is a bearish reversal pattern, there are two consecutive peaks that are roughly equal, with a moderate trough between the two peaks, it gives a signal that at least an intermediate change in trend from bullish to bearish if a key support is broken.

The process of a double top reversal pattern is as follows:

Step 1-Prior trend: Several up bars appear.

Step 2-The first peak: The highest point is created.

Step 3-Trough: A decline takes place, the decline range is about 10-20% as compared to the first peak.

Step 4-The second peak: Price goes up, there is a resistance of the first peak, there are some price testing around the resistance level, we need to reconfirm the resistance level.

Step 5-Decline from the second peak: If a decline from the second peak takes place that means demand is weaker than supply.    

Step 6-Support break: If the price goes down to a support level, the reversal is not complete. If we see the support between the two peaks broken, the double top reversal completes.

Step 7-Support becomes resistance: The broken support now can becomes a potential resistance.

REVERSAL

Reversal is a recognizable change in the price structure, which makes a change in the direction of a price trend.

If a price series of higher highs and higher low reverses into a series of lower highs and lower lows, it is a down trend.

If a price series of lower highs and lower lows reverses into a series of higher highs and higher lows it is a up trend.

“Reversal” is referred to as “Trend reversal” or “Rally” or “Correction”