Reversal patterns
Double and triple tops and bottoms, head-and-shoulders, rounded bottoms, and wedges.
Reversal patterns
| Concept | Explanation | |---|---| | Double bottom / W-bottom | Two similar lows followed by a break above intervening resistance. | | Double top | Two similar highs followed by a break below intervening support. | | Triple bottom / top | Three tests of a similar support or resistance zone. | | Head and shoulders | Three peaks with a higher middle peak; neckline break may confirm bearish reversal. | | Inverse head and shoulders | Three troughs with a lower middle trough; neckline break may confirm bullish reversal. | | Rounded bottom | Gradual transition from decline to improving demand. | | Rising wedge / falling wedge | Converging trendlines that may indicate weakening momentum; direction depends on context and breakout. |