Section 4:
Introduction to Bullish Reversal Patterns
Reversal patterns predict the end of an existing trend and the beginning of a new trend in the opposite direction. It’s equally important to identify the trend as bullish or bearish when trading reversal patterns. Reversal patterns are typically referred to as a top or bottom because they predict the end of bearish trend or bullish trend, respectively.
The bullish reversal patterns and an example of each are listed below.
123 Bottom - Russell 2000 iShares (IWM)
Double Bottom - AT&T (T)
Triple Bottom - Energy Select SPDR (XLE)
Head and Shoulders Bottom - Motorola (MOT)
