Trend reversal Patterns

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Trend Reversal Patterns
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Trend Reversal Patterns
On the charts of currency rates its possible to
highlight geometric models, which are formed
after the price level has reached its maximum
value in the current trend. Recognition of these
figures indicates the end of the trend and the
beginning of a new movement.  To
learn more visit http//www.ifcmarkets.com/en/n
tx-indicators/trend-reversal-patterns
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Head and Shoulders

• Acceleration/Deceleration (AC) Oscillator

The Head and shoulders graphical price pattern
signals the end of trend and the following change
in direction of the assets price. It is
typically formed in a developed uptrend. This
pattern is represented by three tops of the
market price located at different levels two
lower tops (shoulders) aside and one highest top
(head) in between. There is also a neckline
(support) connecting patterns lows. Follo
wing head and shoulders pattern formation the
price is generally believed to drop at least to
its target level, calculated as follows T N
(H N), Where T target level N neckline
level (initial support) H patterns head level
(highest top). To learn more visit
http//www.ifcmarkets.com/en/ntx-indicators/head-a
nd-sholders
THESE INSTRUMENTS GREATLY ENLARGE THE
POSSIBILITIES OF CREATING TRADING STRATEGIES AND
DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY
ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE
TO THE NATURE OF EACH ASSET PRICING, "GOLDEN
INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND
SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE
SIGNALS FOR OPENING A RISK-BASED BALANCED
POSITIONS.
4
Inverse Head and Shoulders

• Acceleration/Deceleration (AC) Oscillator

The inverse head and shoulders graphical price
pattern serves as a sign of trend reversal and is
expected to be followed by change in direction of
the assets price. It is typically formed in a
developed downtrend. Formation The pattern is
characterized by three consecutive lows of the
market price located at different levels two
higher bottoms (shoulders) aside and one lowest
bottom (head) in between. There is also a
neckline (resistance) connecting patterns
highs. Following inverse head and shoulders
pattern formation the price is generally
believed to rise at least to its target level,
calculated as follows T N (N H), Where T
target level N neckline level (initial
resistance) H patterns head level (lowest
bottom). To learn more visit
http//www.ifcmarkets.com/en/ntx-indicators/head-a
nd-shoulders-inverse
THESE INSTRUMENTS GREATLY ENLARGE THE
POSSIBILITIES OF CREATING TRADING STRATEGIES AND
DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY
ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE
TO THE NATURE OF EACH ASSET PRICING, "GOLDEN
INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND
SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE
SIGNALS FOR OPENING A RISK-BASED BALANCED
POSITIONS.
5
Double Top

• Acceleration/Deceleration (AC) Oscillator

The double top pattern is considered a graphical
price formation which precedes existing trend
reversal. It is typically formed in an uptrend
and is expected to be followed by a drop in
prices, while the longer it takes for the pattern
to be formed the more reliable it
is. Formation The pattern is characterized by two
parallel horizontal lines representing support and
 resistance levels which respectively connect two
most recent local highs of the price and a low,
holding a certain bunch of price fluctuations
within. The price reverses twice at resistance
levels under investor consideration the asset is
overpriced there. Following double top
pattern formation the price is generally
believed to drop at least to its target level,
calculated as follows T S H, Where T
target level S support level (recent local
low) H patterns height (distance between
support and resistance levels). To learn more
visit http//www.ifcmarkets.com/en/ntx-indicators
/double-top
THESE INSTRUMENTS GREATLY ENLARGE THE
POSSIBILITIES OF CREATING TRADING STRATEGIES AND
DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY
ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE
TO THE NATURE OF EACH ASSET PRICING, "GOLDEN
INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND
SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE
SIGNALS FOR OPENING A RISK-BASED BALANCED
POSITIONS.
6
Double Bottom

• Acceleration/Deceleration (AC) Oscillator

The double bottom price pattern is believed to be
a sign of existing downtrend reversal. Prices are
expected to begin a rally following its
formation, while the longer it takes for the
pattern to be formed the more reliable it
is. Formation The price dynamics under the
pattern is similar to the Latin latter w. The
two most recent lows of the price represent a
strong support area where investors reversed
their short positions thinking the asset is
underpriced at this level. On the other hand the
most recent local high is considered to be
a resistance level. Following double bottom
pattern formation the price is generally
believed to rise at least to its target level,
calculated as follows T R H, T target
level R resistance level (recent local
high) H patterns height (distance between
support and resistance levels). To learn more
visit http//www.ifcmarkets.com/en/ntx-indicators
/double-bottom
THESE INSTRUMENTS GREATLY ENLARGE THE
POSSIBILITIES OF CREATING TRADING STRATEGIES AND
DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY
ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE
TO THE NATURE OF EACH ASSET PRICING, "GOLDEN
INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND
SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE
SIGNALS FOR OPENING A RISK-BASED BALANCED
POSITIONS.
7
Triple Top
The triple top is a price pattern generally
formed in an uptrend suggesting following
reversal and a drop in prices. It is considered
more significant than the double top
pattern. Formation The pattern is represented by
three consecutive tops locates roughly at the
same level and two bottoms. Resistance and support
lines connect the tops and the lows
respectively. The resistance is believed to be
strong as the price reverses three times from the
level where the asset is considered overpriced.

• Acceleration/Deceleration (AC) Oscillator

To learn more visit
http//www.ifcmarkets.com/en/ntx-indicators/triple
-top
THESE INSTRUMENTS GREATLY ENLARGE THE
POSSIBILITIES OF CREATING TRADING STRATEGIES AND
DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY
ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE
TO THE NATURE OF EACH ASSET PRICING, "GOLDEN
INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND
SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE
SIGNALS FOR OPENING A RISK-BASED BALANCED
POSITIONS.
Following triple top pattern formation the price
is generally believed to drop at least to its
target level, calculated as follows T S H, T
target level S support level (recent local
lows) H patterns height (distance between
support and resistance levels).
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Triple Bottom

• Acceleration/Deceleration (AC) Oscillator

The triple bottom price pattern it typically
formed in a downtrend being a sign of a following
reversal and a rise in prices. It is considered
more significant than the double bottom
pattern. The pattern is characterized by three
consecutive lows locates roughly at the same
level and two highs between them. Support  and
resistance lines connect the lows and the tops
respectively. The support is considered to be
especially strong as the price reverses three
times from the level where investors believe the
asset is underpriced.
To learn more visit
http//www.ifcmarkets.com/en/ntx-indicators/triple
-bottom
THESE INSTRUMENTS GREATLY ENLARGE THE
POSSIBILITIES OF CREATING TRADING STRATEGIES AND
DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY
ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE
TO THE NATURE OF EACH ASSET PRICING, "GOLDEN
INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND
SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE
SIGNALS FOR OPENING A RISK-BASED BALANCED
POSITIONS.
Following triple bottom pattern formation the
price is generally believed to rise at least to
its target level, calculated as follows T R
H, Where T target level R resistance level
(recent local highs) H patterns height
(distance between support and resistance levels).
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Forex Diamond

• Acceleration/Deceleration (AC) Oscillator

The brilliant graphical price pattern serves for
existing trend reversal confirmation in case of
its occurrence on the chart. Traditionally it
appears in an uptrend. The pattern is
characterized by four limited trend lines
representing two support lines below and
two resistance levels above which respectively
connect the most recent lows and highs, visually
forming a figure shaped as a brilliant or a rhomb
as price fluctuations amplitude initially widens
and then narrows.
To learn more visit
http//www.ifcmarkets.com/en/ntx-indicators/diamon
d
THESE INSTRUMENTS GREATLY ENLARGE THE
POSSIBILITIES OF CREATING TRADING STRATEGIES AND
DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY
ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE
TO THE NATURE OF EACH ASSET PRICING, "GOLDEN
INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND
SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE
SIGNALS FOR OPENING A RISK-BASED BALANCED
POSITIONS.
Following brilliant pattern formation the price
is generally believed to fall at least to its
target level, calculated as follows T BP
H, Where T target level BP right support
breakthrough point H patterns height
(distance between patterns bottom and top).
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THANKS FOR ATTENTION
BEST REGARDS, IFC MARKETS