Bearish Patterns Explained
Some of these are called bearish patterns, and have names that describe what they look like; here's a brief rundown.
First up, is the head and shoulders pattern. This is where there are a series of moves to a line and then a large move underneath it, confirming a bearish pattern.
Then there is a Double Top M pattern, where the price rises then is resisted, and then often tends to go down from that resistance level.
Then comes the Breakout which goes down; here there will be a few small rises but then each of these is joined by a series of lows which overall leads to a reversal.
Finally there is the topping out model or saucer top model, whereby over a longer period of time you get a natural top level being reached and once it does the price starts to go down.
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