Bearish Patterns Explained

In technical analysis, there are three different sets of patterns that can be seen.

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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