Reprinted from: http://www.alpari.co.uk/en/market-analysis-guide/technical-analysis/v-pattern.html

Reversal Chart Patterns: V-Reversal Pattern

Mostly V-Reversal patterns (or Reversal Spikes) are formed subsequent to a rapid previous trend:

There are many gaps on the chart, and support and resistance levels are indefinable. The only possible signal is a break through a very abrupt trend line. It is really difficult to find the right moment to enter the market if there is a formation of a spike. The best stategy in this circumstances is to be square (no open positions).

This pattern is frequently seen on the charts of GBP/USD:

Reprinted from: http://www.alpari.co.uk/en/market-analysis-guide/technical-analysis/double-and-triple-tops-and-bottoms.html

Reversal Chart Patterns: Triple and Double Tops and Bottoms

Other important reversal patterns are:

• "Triple Top"
• "Triple Bottom"
• "Double Top"
• "Double Bottom"

Here are some sketch examples of price movements with "Triple Top" and "Triple Bottom" patterns:

Here is the "Triple Bottom" pattern:

"Double Top" and "Double Bottom" patterns are seen on the charts more frequently:

"Double Top" and "Double Bottom" are weaker reversal signals than "Triple Top / Bottom" and "Head and Shoulders". Double Top patterns looks like this:

There are a lot of false signals among Triple and especially Double Tops and Bottoms, so it is important to make a parallel analysis of market volume, price and oscillators convergence / divergence.

Reprinted from: http://www.alpari.co.uk/en/market-analysis-guide/technical-analysis/head-and-shoulders.html

Reversal Chart Patterns: Head and Shoulders and Inverted Head and Shoulders

Price chart analysis starts with chart patterns. When you track price movements you may often see that these movements have predictable configurations, which are called chart patterns. Chart patterns are tools used to predict trend reversal or trend continuation.

Let's begin with chart reversal patterns - "Head and Shoulders" and "Inverted Head and Shoulders".

"Head and Shoulders" is the most recognizable reversal pattern. "Head and Shoulders" pattern appears at the end of a bullish trend:

"Inverted Head and Shoulders" is the first sign that a bearish trend is about to end:

Inverted chart patterns have distinct highs (bottoms). Head Line is a trend line which joins two bottoms between highs (two highs between two bottoms if the pattern is inverted).

Pattern characteristics:

• if on the bearish trend there is an "Inverted Head and Shoulders" pattern, then the higher the Right Shoulder the stronger the signal;
• if on the bullish trend the Right Shoulder of the "Head and Shoulders" pattern is higher than the left one, then this makes the signal stronger;
• in order to define if the pattern is valid, the volume pattern must also meet fairly strict requirements.

Once the Head Line has been broken, it is time to open a position. The best time to make a deal is when the level has been broken and the price rebounds to the Head Line.

"Inverted Head and Shoulders" pattern in MetaTrader