How to Trade Reversal Chart Pattern in XAUUSD
Reversal Trading Patterns confirm the reversal of the xauusd market xauusd trend once this reversal pattern setup is confirmed.
How to Trade the Reversal Chart Patterns
These reversal chart patterns are formed after extended xauusd market xauusd trend either upward or downward and these reversal chart patterns signal that the xauusd market xauusd trend is ready to reverse.
Reversal Trading Patterns
- Double Top XAUUSD Reversal Chart Patterns
- Double Bottom XAUUSD Reversal Chart Patterns
- Head and Shoulders XAUUSD Reversal Chart Patterns
- Reverse Head & Shoulders XAUUSD Reversal Chart Patterns
Double Top Pattern Technical Analysis
Double tops xauusd pattern is a reversal chart pattern that is formed after an extended upward gold trend. As its name implies, this pattern is made up of 2 consecutive peaks which are roughly equal, with a moderate trough between.
How to Analyze Double Tops Reversal Chart Patterns
Double tops xauusd pattern formation is considered complete once gold trading price makes the second peak & then penetrates the lowest point between the highs, called the neckline. The sell signal from this formation occurs when the xauusd market breaks-out below neckline.
In XAUUSD, double tops chart pattern formation is used as an early warning signal that a bullish xauusd trend is about to reverse. However, it is only confirmed once the neckline is broken and the xauusd market moves below the neck-line. Neckline is just another name for the last support level formed on the XAUUSD chart.
Summary:
- Double tops gold pattern forms after an extended move upward
- Double tops xauusd chart pattern formation indicates that there will be a reversal in gold market
- We sell when price breaks-out below neck-line point: see below for explanation.
Interpret Double Tops Reversal Chart Patterns? - Double Tops Technical Analysis
Double Bottom Pattern Technical Analysis
Double bottom xauusd pattern is a reversal pattern that is formed after an extended downwards gold trend. It is made up of two consecutive troughs which are roughly equal, with a moderate peak between.
How to Analyze Double Bottoms Reversal Chart Patterns
Double bottom xauusd pattern formation is considered complete once gold trading price makes second low & then penetrates the highest point between lows, called the neckline. The buy indication from this bottoming out signal occurs when the xauusd market breaks-out the neck line to the upside.
In XAUUSD, double bottoms pattern formation is an early warning signal that the bearish xauusd trend is about to reverse. It's only considered complete/confirmed once the neck line is broken. In this formation the neckline is the resistance level for the gold price. Once this resistance is broken the xauusd market will move up.
Summary:
- Double bottoms xauusd chart pattern forms after an extended move downwards
- Double bottoms xauusd chart pattern formation indicates that there will be a reversal in gold market
- We buy when price breaks-out above neck-line point: see below for the explanation.
Interpret Double Bottom Reversal Chart Patterns? - Double Bottoms Technical Analysis
Head and Shoulders Pattern Technical Analysis
Head & Shoulders pattern is a reversal chart pattern which forms after an extended XAUUSD upward gold trend. It's made up of three consecutive peaks, the left shoulder, head and the right shoulder with two moderate troughs between the shoulders.
How to Analyze Head and Shoulders Reversal Chart Patterns
Head & Shoulders chart pattern is considered complete once gold price penetrates below the neckline, which is drawn by joining the two troughs between the shoulders pattern.
To go short, XAUUSD traders place their sell stop orders just below neckline.
Summary:
- Head and Shoulders gold pattern forms after an extended move upwards
- Head and Shoulders chart pattern formation indicates that there will be a reversal in gold market
- Head and Shoulders pattern formation resembles head with shoulders thus its name.
- To draw the neck-line we use chart point 1 and point 2 as displayed below. We also extend this line in both directions.
- We sell when price breaks below the neck line point: see the chart below for explanation.
Interpret Head & Shoulders Reversal Chart Patterns? - Head and Shoulders Technical Analysis
Reverse Head & Shoulders Pattern Technical Analysis
Reverse Head & Shoulders pattern is a reversal head and shoulders pattern which forms after an extended XAUUSD downward gold trend. It resembles an upside-down head shoulders.
How to Analyze Reverse Head and Shoulders Reversal Chart Patterns
Reverse Head and Shoulders chart pattern is considered complete once gold price penetrates above the neck-line, which is drawn by joining these two peaks between the reverse shoulders pattern.
To go long buyers place their buy stop pending orders just above neckline.
Summary:
- Reverse Head & Shoulders chart pattern forms after an extended move downward
- Reverse Head & Shoulders chart pattern formation indicates that there will be a reversal in gold market
- Reverse Head and Shoulders pattern formation resembles upside-down, thus the name Reverse.
- We buy when price breaks out above neck line point: see the chart below for explanation.
Interpret Reverse Head and Shoulders Reversal Chart Patterns? - Inverse Head and Shoulders Technical Analysis
How to Analyze Reversal Patterns - Reversal Chart Patterns
