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Reversal Pattern

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Reversal Pattern
In technical analysis, any pattern on a chart that indicates a previous trend is changing to a new trend. Generally speaking, any trend in which the highs are lower than the previous highs is a bearish reversal pattern, while any trend in which the lows are higher than the previous lows is bullish. However, some reversal patterns are more complex. Examples include a head-and-shoulders pattern and an outside reversal.

reversal pattern
In technical analysis, a chart formation that indicates a market top or a market bottom. A reversal pattern, which usually occurs after a major movement in the price of a stock or in the entire market, is an indication that investors should adjust their positions to take advantage of the coming change in market direction. A saucer and a head-and-shoulders are reversal patterns.


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A third possibility is making use of more complex reversal and continuation price patterns like a head and shoulders reversal pattern, a triangle, rectangle or diamond continuation pattern, and so on.
A doji or any other reversal pattern followed by a candle with a window, also called a gap, is mostly a reliable reversal indication.
I will trade against the trend if I find a candlestick reversal pattern with confirmation (Bullish Engulfing, Hammer, Morning Star, Shooting Star) 6.
 
 
 
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