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- These are another set of reversal chart patterns in chart analysis.
- These are not as prevalent in charts as Head and Shoulders and Double Tops and Bottoms, but they act in a similar fashion.
- These two chart patterns are formed when the price movement tests a level of support or resistance three times and is unable to break through.
- They signal a reversal of the prior trend.
- A trade entry is initiated at the break of a neckline with a small stop-loss and the target is measured as the distance between peaks/troughs and the neckline