Section 4:
Introduction to Bearish Reversal Patterns
The bearish reversal patterns and an example of each are listed below.
123 Top - Wachovia (WB)
Double Top - Pfizer (PFE)
Triple Top - American International Group (AIG)
Head and Shoulders Top - Citigroup (C)
Introduction to Price Patterns Summary
In addition to forecasting the direction of a stock, price patterns provide context to your trading. The price patterns offer targets, both in time and price. These objectives are extremely useful in weighing the risk against the potential reward, and for setting time horizons.
Study the appearance of each pattern in this section. The sooner you can identify a particular pattern the sooner it can be applied to actual trading.
The next four sections will delve into the details of each price pattern category, starting with bullish continuation patterns. The definition, context, and application of each individual pattern is provided.