1. Head And Shoulders:
With a large peak in the middle and smaller peaks on either side, this is a bullish and bearish reversal pattern.
One of the most trustworthy reversal chart patterns is the head and shoulders pattern.
When the stock price reaches a peak and returns to the same level from which it began, this pattern emerges.
Once more, the prices rise to a peak higher than the previous peak before returning to the base.
Prices once more rise to form a third peak, which is lower than the second peak. From this point on, they begin to fall back to the base level.
The bearish reversal occurs when prices break the baseline with volume.
2. Double top:
A double topAnother common bearish reversal pattern utilized by traders is the top.
The price of the stock will reach a peak before retracing to a support level.After that, it will once more reach a peak before reversing from the current trend.
3 Cup and Handle:
A cup and handle This is a bullish reversal chart pattern with a cup and handle that looks like a "U" and has a slight downward drift on the handle.
The handle looks like a wedge pattern, and the cup looks like a rounding bottom chart pattern.
Low trading volume can be seen on the right-hand side of the pattern for as little as seven weeks or as long as 65 weeks.
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