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Chart Patternsbeginner
HEAD AND SHOULDERSRISING WEDGE AT A TOPFALLING WEDGE AT A BOTTOM

Reversal Pattern

Any pattern that signals a change in the prevailing trend direction — Head and Shoulders, Double Tops/Bottoms, and wedges at extremes are classic examples.

A Reversal Pattern is a formation that marks the end of one trend and the beginning of the opposite. It represents a shift in the balance of power between buyers and sellers.

Major reversal patterns: Head and Shoulders, Double/Triple Tops and Bottoms, Rising Wedge at a top, Falling Wedge at a bottom, Rounding Bottom, and Island Reversal.

  • Reversal patterns require confirmation — a break of a key level (neckline, prior swing) is the trigger, not the pattern shape alone.
  • The larger the pattern (in time and price), the more significant the reversal.

Related terms