Definition of Reversal Chart Patterns

Reversal Patterns confirm the reversal of the xauusd market xauusd trend once this reversal pattern setup is confirmed.

These reversal patterns are formed after extended xauusd market xauusd trend either upwards or downwards & these reversal chart patterns signal that the xauusd market xauusd trend is ready to reverse.

1. Reversal Chart Patterns

• Double Top Reversal Patterns

• Double Bottom Reversal Chart Patterns

• Head & Shoulders Reversal Patterns

• Reverse Head & Shoulders Reversal Patterns

Double Tops

Double tops xauusd chart pattern is a reversal pattern that is formed after an extended upwards gold trend. As its name implies, this formation is made up of 2 consecutive peaks which are roughly equal, with a moderate trough between.

Summary:

• Double tops gold pattern forms after an extended move upwards
• Double tops xauusd chart pattern formation indicates that there will be a reversal in gold trading market
• We sell when price breaks-out below the neck line point: see below for an explanation.

Example of Double Tops Reversal Chart Pattern on a XAUUSD Chart

Double Bottom

Double bottom xauusd chart 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.

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 trading market
• We buy when price breaks-out above neckline point: see below for an explanation.

Example of Double Bottoms Reversal Chart Pattern on a XAUUSD Chart

Head & Shoulders Trading Pattern

Head & Shoulders chart pattern is a reversal pattern which forms after an extended XAUUSD upward gold trend. It's made up of three consecutive peaks, the left shoulder, head & the right shoulder with two moderate troughs between the shoulders.

Summary:

• Head & Shoulders gold pattern forms after an extended move upward
• Head & Shoulders chart pattern formation indicates that there will be a reversal in gold trading market
• Head & Shoulders gold pattern formation resembles head with shoulders thus its name.
• To draw the neckline we use chart point 1 and point 2 as displayed below. We also extend this line in both directions.
• We sell when price breaks-out below neck line point: see the chart below for explanation.

Examples of Head and Shoulders Reversal Chart Pattern on a XAUUSD Chart

Reverse Head & Shoulders Trading Pattern

Reverse Head & Shoulders chart pattern is a reversal head and shoulders pattern which forms after an extended XAUUSD downward gold trend. It resembles an upside down head shoulders.

Summary:

• Reverse Head & Shoulders pattern forms after an extended move downwards
• Reverse Head & Shoulders chart pattern formation indicates that there will be a reversal in gold trading market
• Reverse Head and Shoulders chart pattern formation resembles upside-down, thus the name Reverse.
• We buy when price breaks-out above the neck line point: see the chart below for explanation.

Example of Reverse Head and Shoulders Reversal Chart Pattern on a XAUUSD Chart

Reversal Patterns Tutorials

Double Top Patterns and Double Bottoms Chart Patterns

Head and shoulders Gold Patterns and Reverse Head and Shoulders Chart Patterns