Complete Guide to Reversal Patterns
Explore reversal formations from head and shoulders to morning stars, and learn what traders look for when assessing a potential trend change.
18
Patterns covered
9
Bullish patterns
8
Bearish patterns
1
Neutral patterns
Overview
Reversal patterns describe price structures that traders study for a possible change in trend. A completed formation does not guarantee a reversal, and entry, exit, and risk assumptions determine how an outcome is measured.
Multi-Candle vs Single-Candle Reversals
Multi-candle patterns like head and shoulders, double bottoms, and rounding bottoms take days or weeks to form. They contain more candles, but that alone does not establish greater reliability. Single-candle patterns like engulfing and hammer are faster but require additional confirmation.
Volume Is Key
Compare volume around a potential reversal with a consistent historical baseline. A neckline break with increased volume provides additional context, but a volume threshold alone does not establish a higher success rate. Detection details show whether the platform marks volume as confirmed.
Quick Facts
Patterns in This Guide
18 patterns
A bearish reversal pattern with three peaks — the middle peak (head) is the highest, flanked by two lower peaks (shoulders).
A bullish reversal pattern — the mirror image of head and shoulders, signaling a trend change from bearish to bullish.
A bullish reversal pattern where price tests a support level twice, forming a 'W' shape, before breaking higher.
A bearish reversal pattern where price tests a resistance level twice, forming an 'M' shape, before breaking lower.
Three tests of support at roughly the same level. More reliable than a double bottom due to the extra confirmation.
Three tests of resistance at roughly the same level. Stronger bearish signal than a double top.
A gradual shift from bearish to bullish sentiment, forming a bowl shape. Indicates a long-term trend reversal.
An expanding then contracting price range near a possible market top. Monitor the lower boundary for a potential bearish break.
An expanding then contracting price range near a possible market bottom. Monitor the upper boundary for a potential bullish break.
A bullish pattern where both trendlines slope downward but converge. Often leads to an upside breakout.
A bearish pattern where both trendlines slope upward but converge. Often leads to a downside breakout.
A small red candle followed by a larger green candle that fully engulfs it. Strong bullish reversal signal.
A small green candle followed by a larger red candle that fully engulfs it. Strong bearish reversal signal.
Three-candle bullish reversal: large red, small body (indecision), large green. Found at bottoms.
Three-candle bearish reversal: large green, small body, large red. Found at tops.
Open and close are virtually equal, showing indecision. Can signal reversal when found after a strong trend.
Small body at top with long lower shadow. Bullish reversal signal at support or after a downtrend.
Small body at bottom with long upper shadow. Bearish reversal signal at resistance.
Pattern Trading Checklist
These guides explain pattern structure and trading considerations. For current detection outcomes and their limitations, read the scoring methodology.
Start Scanning for These Patterns
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