Trend Reversal Patterns

On the charts of currency rates it’s possible to highlight geometric models, which are
formed after the price level has reached its maximum value in the current trend.
Recognition of these figures indicates the end of the trend and the beginning of a new
movement.
To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/trend-reversal-patterns
Trend Reversal Patterns

THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF
CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE
PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND
CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET
PRICING, "GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR
TECHNICAL AND SYSTEM TRADERS, PERIODICALLY PROVIDE
RELIABLE SIGNALS FOR OPENING A RISK-BASED BALANCED
POSITIONS.
• Acceleration/Deceleration (AC) Oscillator:The Head and shoulders graphical price pattern signals the end of trend and the following change
in direction of the asset’s price. It is typically formed in a developed uptrend.
This pattern is represented by three tops of the market price located at different levels: two lower
tops (shoulders) aside and one highest top (head) in between. There is also a neckline (support)
connecting pattern’s lows.
Following head and shoulders pattern formation the price
is generally believed to drop at least to its target level, calculated as follows:
T = N – (H – N),
Where:
T – target level;
N – neckline level (initial support);
H – pattern’s head level (highest top).
To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/head-and-sholders
Head and Shoulders

POSITIONS.
• Acceleration/Deceleration (AC) Oscillator:The inverse head and shoulders graphical price pattern serves as a sign of trend reversal and is
expected to be followed by change in direction of the asset’s price. It is typically formed in a
developed downtrend.
Formation
The pattern is characterized by three consecutive lows of the market price located at different
levels: two higher bottoms (shoulders) aside and one lowest bottom (head) in between. There is
also a neckline (resistance) connecting pattern’s highs.
Following inverse head and shoulders pattern formation
the price is generally believed to rise at least to its target level,
calculated as follows:
T = N + (N – H),
Where:
T – target level;
N – neckline level (initial resistance);
H – pattern’s head level (lowest bottom).
To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/head-and-shoulders-inverse
Inverse Head and Shoulders

POSITIONS.
• Acceleration/Deceleration (AC) Oscillator:The double top pattern is considered a graphical price formation which precedes existing trend reversal. It is typically
formed in an uptrend and is expected to be followed by a drop in prices, while the longer it takes for the pattern to
be formed the more reliable it is.
Formation
The pattern is characterized by two parallel horizontal lines representing support and resistance levels which
respectively connect two most recent local highs of the price and a low, holding a certain bunch of price fluctuations
within. The price reverses twice at resistance levels under investor consideration the asset is overpriced there.
Following double top pattern formation the price is generally
believed to drop at least to its target level, calculated as follows:
T = S – H,
Where:
T – target level;
S – support level (recent local low);
H – pattern’s height (distance between support and resistance levels).
To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/double-top
Double Top

POSITIONS.
• Acceleration/Deceleration (AC) Oscillator:The double bottom price pattern is believed to be a sign of existing downtrend reversal. Prices are
expected to begin a rally following its formation, while the longer it takes for the pattern to be
formed the more reliable it is.
Formation
The price dynamics under the pattern is similar to the Latin latter “w”. The two most recent lows of
the price represent a strong support area where investors reversed their short positions thinking
the asset is underpriced at this level. On the other hand the most recent local high is considered to
be a resistance level.
Following double bottom pattern formation the price
is generally believed to rise at least to its target level,
calculated as follows:
T = R + H,
T – target level;
R – resistance level (recent local high);
H – pattern’s height (distance between support
and resistance levels).
To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/double-bottom
Double Bottom

POSITIONS.
• Acceleration/Deceleration (AC) Oscillator:
To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/triple-top
Triple Top
The triple top is a price pattern generally formed in an uptrend suggesting following reversal and a drop in prices. It is
considered more significant than the double top pattern.
Formation
The pattern is represented by three consecutive tops locates roughly at the same level and two
bottoms. Resistance and support lines connect the tops and the lows respectively. The resistance is believed to be strong as
the price reverses three times from the level where the asset is considered overpriced.
Following triple top pattern formation the price is generally
believed to drop at least to its target level, calculated as follows:
T = S – H,
T – target level;
S – support level (recent local lows);

POSITIONS.
To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/triple-bottom
Triple Bottom
The triple bottom price pattern it typically formed in a downtrend being a sign of a following reversal and a
rise in prices. It is considered more significant than the double bottom pattern.
The pattern is characterized by three consecutive lows locates roughly at the same level and two highs
between them. Support and resistance lines connect the lows and the tops respectively. The support is
considered to be especially strong as the price reverses three times from the level where investors believe the
asset is underpriced.
Following triple bottom pattern formation the price is generally
believed to rise at least to its target level, calculated as follows:
T = R + H,
Where:
T – target level;
R – resistance level (recent local highs);

POSITIONS.
To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/diamond
Forex Diamond
The brilliant graphical price pattern serves for existing trend reversal confirmation in case of its occurrence
on the chart. Traditionally it appears in an uptrend.
The pattern is characterized by four limited trend lines representing two support lines below and
two resistance levels above which respectively connect the most recent lows and highs, visually forming a
figure shaped as a brilliant or a rhomb as price fluctuations amplitude initially widens and then narrows.
Following brilliant pattern formation the price is generally believed to
fall at least to its target level, calculated as follows:
T = BP – H,
Where:
T – target level;
BP – right support breakthrough point;
H – pattern’s height (distance between pattern’s bottom and top).

THANKS FOR ATTENTION
BEST REGARDS,
IFC MARKETS

Trend Reversal Patterns

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