Course: Chart formations
Lesson Insights
Trend reversal patterns are graphical formations in stock prices or other financial instruments that indicate a potential change in the current trend. They are signals for traders and investors that the direction of price movement may be about to change, potentially leading to a new trend in the opposite direction. Some examples of trend reversal patterns include head and shoulders, double tops and bottoms, and trend line breakouts. The lesson lists the trend reversal chart formations and illustrates them with real examples.
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