Here is a printable cheat sheet of Bearish Reversal patterns list when it comes to technical analysis. It includes fun images to help you memorize the patterns and identify them easily on your chart.
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When you are a Forex Diva graduate and are released to start making money trading currencies, you need to have a good eye for all the patterns and to identify them on the charts. Now I know how busy you are and don’t have time to memorize all the patterns. So I decided to make it really easy for you. You can simply print out this cheat sheet and hang it on your fridge, computer, bathroom door, or even above your mirror. By seeing all the visual metaphors and their interpretation everyday, it is just going to magically stick to your mind. Believe me, I have tried it myself! Here is your printable Bearish Chart Pattern list.
Bearish Reversal patterns list
Bearish reversal chart patterns can help identifying an end to an uptrend. The first pattern in the Bearish Reversal Patterns List above is a Double Top chart pattern. When confirmed, indicate that the trend of the market price will reverse from uptrend, into downtrend.
A double top is the formation of a pattern that looks like the letter M or the heads of twin babies hugging. After a period of an uptrend, the pattern is formed by two consecutive peaks that are almost equal to each other, with a “valley” in between. This usually means that the pair has finished moving up and that now we could be expecting its price to go down.
The “tops” are peaks that are formed when the price hits a certain level that can’t be broken.
After a double top pattern is completed, the previous support level that was broken will often act as a resistance level. You see, everything we’ve been learning is coming together.
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And the even better news is that by practicing on free demo accounts, you will be able to identify all these patterns in less than a second. Here is another story of a double-top. Next story should be written by you on the Invest Diva’s discussion group.