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Reversal patterns, as the name suggests, change the course of an ongoing trend, whether it is bearish or bullish.
For example, if the price action indicates that the trend is moving upwards, then this should eventually see an end to the course of the ongoing trend. And a reversal to the downside should be initiated.
Reversals can be easily spotted on the charts. However, beginner forex traders usually identify them after they have already taken place.
In this article, we are going to explore the most commons types of reversal patterns, to help FX traders identify them on time.
Most Common Reversal Patterns
While there are many reversal patterns to consider, we put together a list below, identifying some of the most common ones to add on your cheat sheet:
- Double Tops and Double Bottoms
- Triple Tops and Triple Bottoms
- Head & Shoulders and Inverse Head & Shoulders
- Ascending Wedges and Descending Wedges
Each one of these reversal patterns occurs several times during a forex tradin...
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