Friday, 24 February 2012

Type Of Reversal Patterns

Type Of Reversal Patterns

 

  1. Bottoms complications (three consecutive bottoms)
  2. (Types of wedge)
  3. Multiple peaks (three peaks)
  4. (Bottom round)
  5. (head and shoulders)



1-Bottoms complications (three consecutive bottoms)




Double bottoms
The multiplier is a bottom reversal pattern of positive and consists of two consecutive equal basins are
Summit is well done and moderate in the middle is the opposite of the pattern of the double summit.









2-    (Types of wedge)
First : Bearish wedge
Is a pattern starts with a positive reflex wide at the top and shrink while prices fall









1 - Direction: -: Like any reflex pattern there must be a prior trend to reverse. The pattern
Usually over a period of 3 to 6 months.
2 - Top line of resistance: - takes on a lower level of the rate of formation of the line of resistance is higher. And be
Three peaks
All lower than the top of the summit before.
3 - Alawti support line: - Reverse the line of resistance.
4 - contraction: - meet the line of resistance lower top line of support for the formation of a conical shape.
While mature pattern of low-lying levels of the reaction is still penetrate the low-lying levels of the previous
But this becomes more shallow penetration to decrease to the quantities and then creates a resistance line.
5 - Size: - important when you break through resistance levels should be with him in high quantities
To confirm the
pattern.


Second : The rising wedge

The pattern is a bullish reversal pattern expected for a negative start, a broad decline in the bottom and shrink
To the top of the continuity with the rise in prices, which reverse the bearish wedge.











3-     Multiple peaks (three peaks)


Reflex is a negative pattern consists of three high levels (peaks) and the interval between them
Points of support. These peaks usually in a time frame ranging from 3 to 6
months


1 - Pre-direction: - in any style that the reflex must be the current trend opposite.
2 - Three high levels: - does not have to be exactly equal, but must
Be equal to a reasonable extent from each other.
3 - Size: - Size here is usually in the fall, but sometimes more than the size of the close proximity of the peaks.
4 - Support and Resistance: - Support here likely to become resistant.
Note in this model - that is before this form can be a full model
Upward triangles (sample positive), but the model is complete when complications occur summits
Descent and not to break the resistance and the last break the first and second support.


Double top
 
Summit is a double negative reflex pattern which is formed after the rise and the pattern consists of
Consecutive peaks is equal to bungle a moderate basin
in the middle


1 - Pre-direction: - in any style reflex, there must be reverse the current trend. In
This pattern is the trend of improvement before the emergence of this pattern.
2 - the first summit: - must not be the highest point in the current trend.
3 - basin: - After the summit, the first drop happens and this fall in the range of 10 to 20% and volume
Here is not important in practice.
4 - the second summit -: the progress of the low levels usually occurs low volume, play
Resistance from the previous high level. And the period of time between the peaks of a few weeks from 1 to
3 months.
5 - the second drop from the summit: - subsequent landing of the second summit should be a drop in
Fast and sometimes there is a gap here and be a bear-sized
weak.
4-   (Bottom round)

Bottom round
Reflex pattern is a positive long-term plans and the best plans are appropriate to it
Weekly and expected to decline after a
rise of







1 - Pre-direction: - to be a reflex pattern must be a prior trend
Otherwise. Indicates Allowati rock bottom level to the level of recycled and new or low level of reaction
Low. It should be noted that this level Allowati may not be the lowest level in recent months
Years.
2 - Landing: - The first part of the bottom of the drop to the level of recycled lead Oti in this pattern.
3 - Duration: - Level Allowati from the bottom round should take a few weeks to shape
And must not be sharp. Because the falling prices in the long term.
4 - start of climb: - comes confirmation of the rise once the pattern is broken above the level of the reaction of higher
Asher, who start at the beginning of landing pattern, the resistance has become support at this level.
5 - Size: - in the ideal pattern for the bottom of the circular scale of successive levels are in the form of the bottom
(Ie, high and then low and then high (ie high level in size at the beginning of fall and
And then in the low end of the landing and then rise. Size and levels are not very important in case of deterioration
And landing, but preferably in the beginning of the ascent that there will be a marked increase
in size



5-  (head and shoulders)



Model of the head and shoulders -:
This model is the most important models of prices that must be focused on further to the credibility
Enjoyed by the high, which is a reversal pattern as it indicates a trend reversal to
The bottom, as
in the following figure



Model shows us the head and shoulders, where we see the share price has been traced in the form of a human head in the middle
And around the shoulders. Notice how the lowest point on the left shoulder is equal to the lowest point on
The right shoulder, and these two points the last two represent the neckline. As is the case with the rest of
Very important, and here must be that high trading volume (volume) the confusion, the volume of trading
At the shoulder, as well as at the head.
It is important that the analyst does not make mistakes in understanding the intended model of the head and shoulders, as the target
Here is not trying to predict the emergence of form when we see the left shoulder, or even the appearance of the head, but that
What we would like to know is whether the model has been completed the head and shoulders or not. We can not find out
To complete the right shoulder and there is less Bsar closure of the line of the neck, then we can
The say that what we have is actually a model head and shoulders and therefore begins to decline. But
How is the amount of decline expected? In most cases the stock down from the level line
Shoulders (neck line) distance themselves from the top of the head to the neckline, and for the
duration


We see in the picture it appeared to us three successive peaks of Summit Central is the top of the head may be a
Peaks are low or equal bungle
1 - left shoulder - the left shoulder is a summit, which indicates the high point of the trend
The current. After this summit will be landing is completed and thus the formation of the shoulder, as in No. (1) in
Is
2 - Head: - consists of the USA Low-level of the left shoulder and consists of a vertex that is
Higher than the top of the left shoulder and the stock begins to decline as the neckline, as in No. (2) in
Is
3 - the right shoulder: - rise from USA Low level of the neckline to the top of a shoulder
The right and consists of top and be lower than the top of the head and are usually compatible with the top of the shoulder
The left and the right shoulder to complete that must be broken down neckline.
4 - line Neck: - shaped neckline in the delivery line of levels down from No. (1) and (2) as
Is in the picture
Which indicates the end of the left shoulder and the beginning of
the head.


Model inverted head and shoulders -:




 



A pattern that reflects a positive and because it can buy the stock when you see the head-down has
Was completed drawing the shoulders, so that is positive proof of purchase. And reverse fully
the first model


Notes on the form: -
Head and shoulders is an art form refers to a strong signal to drop very often when
Performance is still strong and I got to be an inverted form is a strong signal to the rise of private
After the landing stage.
It is important you may see part of the figure is usually easier to shoulder and head and the beginning of the right shoulder, but do not
Complete the right shoulder so it does not complete the shape. And sometimes complete the right shoulder and
But come back when the price rise comes into contact with the neck line.
And the shape is not technically completed until after the left shoulder and head and right shoulder and
Price penetrates the neckline at least two consecutive days if the chart for today's performance for the price. In
The case of non-inverted form break is (neckline) down and in the case of Figure
Break is inverted (neck line (upwards.
And the process of calculating the amount of decline expected in the case of breaking the neckline down the price by taking
Which is the top of the head and subtractions from the price at the neckline and the amount of the difference
is the amount of





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