The Most Powerful Reversal Patterns In Forex You Must Know

A Brief Introductions to Common Reversal Patterns

Price Patterns help traders gain some insight into what the current market sentiment is and the direction it is most likely to go.

Price Patterns are interesting since, unlike markets (stock, oil etc, where bulls and bears determine the strength of one asset, forex help give an insight into which currency is more likely to get weaker while the other gets stronger once the price breaks out of the pattern formed.

Generally, you will find two Price Patterns that form and can be traded together or independent from each other depending on the trading strategy you use or the time frame that you are trading on:

Candlestick Patterns: look for specific candlestick combinations which indicate what the market is going to do next.
Chart Patterns: instead of looking for specific candlestick combinations, traders will look for a large group of candlesticks that form certain patterns, such as Double Top/Bottom, Bull/Bear Flags and so on.

By reading price and what it is doing, traders can obtain better insight into what a market is doing to add an extra layer of confirmation to their analysis.

Price Patterns can come in 3 broad types: Continuation Patterns, Reversal Patterns, and Uncertain Patterns.

The focus point of the article is Reversal Patterns. It is useful for you to be aware of other pattern types because what you can find is Reversal Patterns can often follow Continuation Patterns or Uncertain Patterns, or even lead to these.

Hence an overview of them is useful.

Consolidation ➜ Break out ➜ Continuation Pattern ➜ Reversal Pattern ➜ Continuation in the opposite direction.
Consolidation ➜ Break out ➜ Reversal Pattern ➜ Continuation in the opposite direction.
Consolidation ➜ Fake out ➜ Reversal Pattern (Stop Hunt) ➜ Continuation in the opposite direction.

What Are Reversal Patterns?

Reversal Patterns are specific price formations resulting from price movements in the financial market that indicates the price has stopped moving in its current direction and has reversed to go towards the opposite direction — hence the name “Reversal Patterns”.

Answering the question in the simplest form: a pattern that tells you when the price is likely going to reverse and go in the opposite direction.

Logically, you can assume that since Reversal Patterns involve price moving in the opposite direction, Bullish Reversal Patterns and Bearish Reversal Patterns do exist.

It makes sense why many traders of varying levels and abilities are very keen to ask about reversals and want to test them out because traders can take advantage of them and improve their trading performance with some choosing to make them part of their trading plan.

New traders or anyone discovering Reversal Patterns for the first time think that Reversal Patterns are a Magic formula, they can use to predict market reversal. But the reality is most traders don’t struggle with understanding “what is a Reversal Pattern”, but with understanding how to actually use them profitably.

How Reversal Patterns Help Prop Traders?

Profitable traders find lots of value in Reversal Patterns because of what they are designed to detect: a change in the market direction.

Traders could use Reversal Patterns to predict potential market reversal points to enter the market as a reversal trade. Such strategies offer the highest Reward to Risk Ratio when used at the right time due to using a tight stop loss.

Also, no trader would want to stay in the market and be surprised when it turns against them. A sign that the market is going to U-turn is something every trader wants to know to manage their trade. That is also exactly where Reversal Patterns (Chart and Candlesticks Patterns) come in handy. They let the trader know when the market sentiment is going to change. That could be the signal the trader needs to decide whether to continue with the trade or close it altogether and bank the profits made.

Another instance is if a trade was going in a loss and the trader is deciding whether to close the trade or leave it to hit stop loss. If the Reversal Pattern occurs at some point when the trade is in a loss, then the trader could decide to not close it due to the presence of the Reversal Pattern with the expectation that the trade will go back in profit into the original intended direction.

Every type of trader can benefit from this, no matter what sort of trader they are. For instance, a fundamental trader can use the Reversal Patterns to illustrate the market narrative at a given point in time in relation to Economic News while technical traders can use it to confirm their trading idea or analysis or to enter the market.

That explanation should help you understand a few trading situations where Reversal Patterns would be attractive for the trader, but now the obvious question is:

Do Traders Use All Reversal Patterns and Are All Reversal Patterns Profitable?

Unless you are a machine or have an exceptional memory, it will be quite tasking for you to remember all these Reversal Patterns (and more exist). Even if you can remember them all, you will learn that experienced traders do not use every pattern.

This is the same reason why many traders don’t make a profit using Reversal Patterns. Using a Reversal Pattern should not be used at any time and all the time whenever a Reversal Pattern forms in any market condition.

There are rules to when Reversal Patterns should be used that should be in alignment with other market conditions that would make these Reversal Patterns High Probability.

So, keep reading…

In this article, we will explore “What are the most powerful Reversal Patterns”. When to use them and how to use them. We will also touch on why traders fail to use them in more depth.

What Are the Most Powerful Reversal Patterns? Do You Mean Most Powerful or Most Reliable?

Saying a pattern is “most powerful” is not accurate because it teaches some bad habits. You begin to put extra weight on certain patterns that you shouldn’t which is what causes some traders to fail with trading reversal patterns (more on this later). To avoid falling into this trap, you should pick the patterns that work best for your trading strategy and think of these as the most reliable patterns in the charts you are trading when they come in alignment with certain market conditions.

If you don’t know where to start, with the too many Reversal Patterns available, then keep reading. We have done the heavy lifting for you and consolidated data from multiple resources and studied hundreds of charts and combined that with our 20+ combined years of experience to come up with a list of the Most Reliable High Probability Reversal Patterns.

All the Reversal Patterns below can be used as intraday reversal patterns or any other trading style because the Price is fractal.

Chart Reversal Patterns

Inverted Head and Shoulders & Head and Shoulders Reversal Patterns

One of the classic reversal patterns. Head & Shoulders appears during uptrends and the Inverted (or Inverse) Head & Shoulder Pattern appears during downtrends. This will be easier to understand if we go through the standard Head & Shoulders Pattern.

The Head & Shoulders Pattern is formed when you see a peak (the first shoulder), then a higher peak (the head), and then a lower peak (the second shoulder).

The common way of trading the Head and Shoulder Pattern is by drawing a neckline from the bottom of the first shoulder and connecting it to the bottom of the second shoulder. If it slopes down, then it becomes a higher probability pattern. Also, usually for these patterns to work, usually higher timeframes (4H and Daily) have a higher probability to work than 1H or lower timeframes. Then place your entry order below the neckline.

Also, to find your target measure the high point of the head to the neckline. This tells you how far the price will move after it breaks the neckline. Then project that price below the second shoulder’s neckline.

But this method allows for too much distance between the entry and the stop loss If you were to enter a trade using a higher time frame. Having a too large stop loss means you would have to reduce your position size drastically and have a larger profit target distance to have an adequate risk-reward ratio.

For this reason, we would enter a trade using this pattern in a different way. So instead of entering at the break of the neckline, we would:

Wait for the price to form the Head and Shoulders and then break below the 2nd shoulder “Break in Market Structure“.
We wait for the price to retrace back to a previous area of consolidation within the 2nd Shoulder. We call this consolidation area an “Order Block“.
We enter the trade at the Order-Block and add the Stop Loss to be above a previous High (2 Highs to the left).

Trading the Head and Shoulder Reversal Pattern this way would maximise your Risk Reward Ratio by having a tighter Stop Loss compared to the same profit target and larger position size to allow for making more profit.

The Inverse Head & Shoulders appears in uptrends and is an upside-down version of the Head & Shoulders Reversal Pattern. The principles are the same, except it is flipped upside-down.

Triple Bottom / Triple Top Reversal Pattern

It is an almost 3 equal swing highs (roughly equal in practice) which will then be followed by a break below a support level, or an almost 3 equal swing lows which will then be followed by a break above a resistance level.

The idea is that this Reversal Pattern is a form of consolidation in price before the price reverses in the opposite direction. It suggests the uptrend or downtrend is losing momentum and then it consolidates and can’t break through the next level.

However, for this Triple Bottom or Triple Top to be considered a high probability Reversal Pattern, you need to keep in mind a few things.

The 3rd swing must run the stops of the 2nd swing (and sometimes of both the 1st and 2nd swing).
If there is no stop run by the 3rd swing and the 3 swings are equal, then you would need to wait for more confirmation from the price because it wouldn’t be a high probability Reversal Pattern yet.
Usually, when there are equal highs “Engineered Liquidity”, it is because the banks are leaving this area to come back to it and run the stops in the seek of liquidity. So don’t fall into that trap and get stopped out. Instead, make sure that the run on stops occurs first and then enter the trade.

Exhaustion Gap in Forex & Island Reversal Pattern

In the stock market, an Exhaustion Gap occurs when there is a massive shift in sentiment from bullish to bearish or vice versa creating a visible gap in price action.

Those gaps signal a change in direction because there is something that has changed fundamentally and big players have tipped their hand and exited their positions at the 2nd Gap. So it would be only logical to trade this pattern after seeing the 2nd Gap at a retest.

But the real question is, how can you trade this Reversal Pattern in Forex? As you may already know, Forex is a lot more liquid market than Stocks and gaps like this happen very rarely.

Well, I’m here to tell you that you don’t have to see that gap in Forex like you see it in Stocks to trade this Reversal Pattern.

In Forex you will not get an Exhaustion Gap like this because it is more liquid than the equity market. Rather, you will see a big momentum candle body, followed by a period of consolidation which then ends with another big momentum candle in the opposite direction which then changes direction.

While Exhaustion Gaps look different in Forex and Stocks, they both share 3 features:

They form after a large trend.
Higher than average trading volume happens on the day.
The Gaps occur immediately when the market opens after the weekend.

The reasoning behind the Islan Reversal Patterns is that after the trading asset has been in a major trend in one direction, it goes into consolidation for a period that could take days or weeks.

And then usually, banks and large institutions hold their money or exit their positions during the large consolidation in preparation for a major trend change before the public knows about it.

Also, all major meetings or economic news that could cause a big impact on the market tend to happen because of meetings held between major countries on the weekend.

So when the market opens on Sunday or Monday, the market looks for pricing in that major fundamental change and ends up causing a big gap and followed by a large momentum candle.

Our job is not to predict when the gaps will happen but to look for an entry after they occur at the retest of that 2nd gap as shown in the picture below.

In terms of Stop Loss, you would need to place the stop loss above the resistance of the 2nd gap.
In terms of the Profit Target, you should be targeting previous lows or highs depending on the trend direction change.

The Three Indians Reversal Pattern

Three Drive Touch, 1-2-3 Pattern, Three Touches, whatever you like to call it — the Three Indians Reversal Pattern is a classic Reversal Pattern that is best used to trade reversals after a period of retracements of a trend. This means that when a retracement is about to reverse allow you to enter the trader and get in sync with a major trend direction.

However, this can be applied to any timeframe. a major trend is “Major” only relative to the timeframe you are trading on. But for the sake of this example, I will use a recent example on EURUSD 4H Timeframe in a bearish trend.

The reasoning behind this Reversal Pattern is that when a major trend is consolidating or retracing, the price seeks liquidity by pulling back from its trend in order to accumulate more orders before it continues its overall trend.

The reason why there are three drives or swings is that each time the price forms a swing high when retracing in a bearish trend (or a swing low when retracing in a bullish trend), institutions are adding more sell positions above each previous high by matching their sell orders with the retail stop loss placed above those previous highs (when bearish, each Sell position has a buy stop loss and when bullish, each Buy position has a sell stop loss).

So, usually, this happens twice and the 3rd time is usually the time where the signals become valid to trade.

Of course, you could trade this pattern profitably in 2 ways.

The conservative way, where you would wait for the price to go back below the 2nd swing high price level in a Bearish trend (for a Bullish trend, you would wait for the price to go back above the 2nd swing low) when entering the trade. The reason why it is a conservative way is that you only enter the trade once the price is gone back below the price level of the 2nd Swing.

If you are interested in learning how to accurately predict who to enter this Reversal Trade at the 3rd Swing High while the 3rd swing is forming, then make sure to join our BLT Smart Money Concepts course.

Candlestick Reversal Patterns

When talking about candlesticks reversal patterns we will only consider the ones with 2 or more candlesticks formations because they give a better view of the Market Narrative. Single Candlesticks mean nothing on their own because the price will not reverse or change direction just because one single reversal candlestick shows up.

So, let’s go ahead and explore the most reliable candlestick Reversal Patterns below:

Evening Star / Morning Star Candlestick Reversal Pattern

The Evening Star is a Bearish Reversal Pattern you can spot it at the end of a Bullish trend while the Morning Star Bullish Reversal Pattern is spotted at the end of a Bearish trend.

Characteristics of Morning Star Bullish Reversal Candlestick Pattern:

1The 1st candlestick is bearish and has a relatively large body;
The 2nd candlestick in the middle has a small body;
The 3rd candlestick is bullish and has a relatively larger body than the 2nd candlestick.

Characteristics of Evening Star Bearish Reversal Candlestick Pattern:

The 1st candlestick is bullish and has a relatively large body;
The 2nd candlestick in the middle has a small body;
The 3rd candlestick is bearish and has a relatively larger body than the 2nd candlestick.

In terms of Trade Entry, you would enter only when

The Evening Star/Morning Start has formed at a Key Level.
Only after the 3rd candlestick has closed.

In terms of Stop Loss, it should be just above the highest high of previous candlesticks within the latest price swing and not just above the Reversal Pattern Candlestick formation. (vice versa for the Morning Start Bullish Reversal Pattern).

In terms of Take Profit, as always, look for a swing low (or more than one swing) in the opposite direction as targets.

Tweezers Top/Bottom Candlestick Reversal Pattern

The Tweezer Top Candlestick Reversal Pattern is a surprisingly simple 2 candlesticks Reversal Pattern and marks that a trend is about to reverse.

Characteristics of Tweezers Top Candlestick Reversal Pattern

Shows up at about the end of a Bullish Trend.
The 1st candlestick is Bullish and has a relatively large body.
The 2nd candlestick is Bearish and has a relatively large body too.

Characteristics of Tweezers Bottom Candlestick Reversal Pattern

Shows up at about the end of a Bearish Trend.
The 1st candlestick is Bearish and has a relatively large body.
The 2nd candlestick is Bullish and has a relatively large body too.

Engulfing Candlestick Reversal Pattern

This is a pattern formed by 2 or more candlesticks, as the name suggests one candlestick’s body (the last one) engulfs the 1st or the few candles before it.

If you look up the online Engulfing Candlestick Reversal Pattern, you will find that this pattern is made up of only 2 candlesticks, but in reality, that’s not always true because it’s not really about the number of candles but it’s more about the story behind the candle formation, which we call the Market Narrative

As you can see from the picture below The Bullish Engulfing Pattern #1 consisted of 6 candlesticks. This is because the 1st two candles can be considered to be one bearish candle. Then candles number 3, 4, 5, & 6 can be considered as one candle, which makes up the Bullish Engulfing #1 pattern.

meanwhile, in the Bullish Engulfing #2 pattern, you would see the usual common way of looking at Engulfing Pattern. But you would have missed the better entry at the key level.

Characteristics of Engulfing Candlestick Bullish Reversal Pattern

It could be made up of 2 or more candles.
The 1st one of a few candles must be bearish and are treated as one bearish candle if there is more than one.
The last candle of a few before it must be bullish and are treated as one if there is more than one.

Characteristics of Engulfing Candlestick Bearish Reversal Pattern

It could be made up of 2 or more candles.
The 1st one of a few candles must be bullish and are treated as one bullish candle if there is more than one.
The last candle of a few before it must be bearish and are treated as one if there is more than one.

Why Traders Fail When Trading Reversal Patterns

Trading Reversal Patterns can be profitable for traders, yet most traders fail when trading them. The difference is that:

Profitable Traders decide which reversal patterns are the most reliable for them in confluence with other complementary analyses. they do not make entire trading decisions based on them alone.
Unprofitable Traders decide certain Reversal Patterns are the most powerful without having backtested them enough and understanding well how to use them in conjunction with their strategy. They make trading entire decisions based on them regardless of their trading plan rules. They tend to trade the patterns on their own and ignore lots of other important signals, confluences and factors in the market. This causes traders to misread price and sentiment and lose the broader view of the market they must have.

All of this is just because they might have felt Reversal Patterns were so powerful as if they had some hidden message that overpowered the rest of the market, which is the wrong thing to do and why you should never think of Reversal Patterns as “powerful” or any tool as “powerful”.

This is bad trading psychology practice because it forces your mind to think in terms of powerful and weakest, instead of thinking in terms of High Probability and Low Probability at the time the patterns are forming and the given market conditions during the same time.

Reversal Patterns have their limits. So, we will outline some of the confluences and factors that we mentioned earlier that cause traders to fail when they are eager to add Reversal Patterns to their trading plan.

Not Using the Reversal Patterns In-Line with The Market Narrative

The Market Narrative means in simple terms understanding the broader view of the market, what the price is doing right now and whether it will reverse at specific price levels or not and why.

To a properly understand the Market Narrative, before looking at the Reversal Pattern, you need to ask yourself:

What is the higher timeframe direction?
– Is it bullish or bearish?
What the market is doing now?
– Is it trending or consolidating?
Where is the price is trying to go to?
– Is it just consolidating?; Or
– Did it just break out recently from its consolidation?; or
– Is it only seeking liquidity by creating a fake-out and then reverse?
What Liquidity Zone it is trying to reach to?
– Is the price trying to just run stops above a recent swing High (or below a recent swing low) and then Reverse at Key Support or Resistance Level?; Or
– Is Price just reversed for a short pullback only to continue with the original direction?
What about Inter-Market Analysis, for example, EUR vs USD. Do they confirm each other’s or not?
– For example, if you decide that EURUSD is about to reverse to go short and a Reversal Pattern showed up, is there supporting evidence that the USD will also get stronger or at least consolidate to allow for EUR to reverse and get weaker?
(PS: when looking at pairs, for example, EURUSD, EUR gets weaker if EUR is neutral vs USD strong or if EUR is weak and USD is neutral).
Is there any market news that supports the idea of the price reversing after the Reversal Pattern has formed?
– Or is the price is just pulling back after the Reversal Pattern formation only to continue trading in the original direction at or after the news release?

Planning your trade well with different potential scenarios and understanding the Market Narrative should give you an advantage and an edge which should know where the market is most likely to go and trade in that direction.

There has never been a Reversal Pattern trader who predicted a Market Reversal by just looking at the Reversal pattern alone, which leads to the next point.

Using Reversal Patterns to Predict Market Reversals Even When the Market Isn’t Ready for One

Reversal Pattern Traders that fail seem to be the ones who try to catch a market turn first so they can say they caught 100% of a move. This is because no successful Reversal Pattern Trader suffer as badly as a Reversal trader that suffers badly.

Whenever a trader trading Reversal Patterns suffers a huge loss, it is because the Reversal Pattern they were trying to catch was a reversal that is based only on their imagination that they would have caught the top or the bottom of the market, without looking for extra clues or confirmations, only to turn out that market was clearly not going to reverse any time soon.

No one ever could catch 100% of the market reversal. Remember to always look for confirmation even if that meant you could catch fewer pips. You only need to catch the lion’s share of the move.

You need to look for the Highest Probability trade entry with the lowest potential risk and not the highest pips number trade.

Of course, it would be good if you could catch more pips but the focus should be on Risk Management and High Probability trade first. The rest will follow.

So why do some Reversal Pattern traders ignore the Market Narrative, even when it is clear as day that it’s not going to reverse?

The reasons are simple,

Fear of Missing Out (FOMO) thinking that if the Reversal Patterns have formed that they are going to miss out on the move; or
Not looking at the Market in an Objective way and instead of looking at the Reversal Pattern in a Subjective way by trying to force a trade idea into the market instead of looking and trying to understand what the market is telling you. They Believe the reversal pattern of their choice is the only one they need. They try to fit the Reversal Pattern they want onto the market instead of letting the market tell them what Reversal Pattern is forming.

Using Reversal Patterns Without Looking at Other Supporting of The Trade

Other trade entry elements are ignored for a pattern by some Reversal Pattern enthusiasts, especially if patterns they consider powerful appeared. If they had other confluences for entering the trade, for example, a touch on a key level and trend line.

However, if the other 2 confluences are invalidated for whatever reason and they choose to hold onto the trade simply because the Reverse Pattern they believe is powerful showed up hoping the position will turn in their favour (and likely use a Reverse Pattern to justify this).

That is an example of a trader ignoring all the supporting reasons for the trade and purely relying on the pattern alone.

Not Using Reversal Patterns at Important Bank Key Levels

One of the biggest sins a trader can commit. Not using Key Levels to tell the trader where the market’s turning points are most likely to be. So, ensuring the Reversal Patterns coincide with Key Bank Levels, traders are effectively playing Russian roulette as they could be their trades, but at the wrong times. This is also a symptom of another problem, which beautifully leads into the last section.

Using Reversal Patterns Before Runs on Liquidity at Important Bank Key Levels

Did it ever happen to you that you entered a trade using a Reversal Patter and then stop you out of the trade only to continue in the direction of your original trade idea? – this is called “Run on Liquidity”, “Stop Hunt” or “Stop Run”.

Well, this means you are entering too soon. Key Bank Levels are strong only when there is a run on liquidity has occurred.

When the run on liquidity occurs, it is giving us an indication that big institutions are getting involved around this level giving us an extra confirmation that this level is holding and we can consider entering the trade soon.

So, instead of falling into this trap, wait for that Run on Liquidity to happen around that Key Bank Level where you have found the Reversal Pattern formation and then enter when it is save to enter and the risk is lower.

If your idea about the reversal is correct, the price should drop from here and not come back into your stop loss anymore.

Not understand that Reversal Patterns Are the Effect, Not the Cause of the Market’s Reversal

Traders that tend to fail in trading Reversal Patterns believe the pattern will cause the market to reverse, so they end up thinking their Reversal Pattern of choice is a powerful signal that causes market reversals.

They may get lucky, but reality will come in. The reality is the opposite:

Reversal Patterns are only the Phenomena. The Central Bank causes The Market to Reverse.
Reversal Patterns are just patterns that form as a result of the Price Action Movement over time.

If you are reading market sentiment, you’re reading what the market is doing at this moment in time, and what it’s likely to do next; you are making an educated forecast not reading a crystal ball. Therefore, your Reversal Pattern should be treated as one of your tools, not your crystal ball.

Reversal Pattern Trading: The Art of Trading Reversal Patterns

Are Reversal Patterns traded in Trending or Ranging Markets?

Reversal patterns can be both traded in trending markets and ranging markets. It’s only a matter of when to use them in each market environment and relative to the timeframe you are trading it off.

In Ranging Markets, they are best used when:

Range Reversal at the Bottom of the range when Bullish (or Top of the range when Bearish):
When the price is approaching the bottom (or top) of the range and the Reversal Pattern forms at around a key level.
Pullback Reversal in the Middle of the Range:
When the price has already reversed and we want to enter the trade near the bottom (or top) of the range when the price retraces to a key level to get into the trade.

In Trending Markets, they are best used when:

Trend Reversal at Key Bank Levels:
When the price is approaching the Key Level and the Reversal Pattern forms at or around the key level.
Pullback Reversal at Key Bank Levels:
When the price has already reversed and we want to enter the trade when the price retraces to a key level to get into the trade.

One thing I want to highlight. Something that could catch out lots of Reversal Pattern traders is that what they may think is a reversal is actually a retracement (the market temporarily reverses and then resumes its direction).

So how can you differentiate between them?

Reversals happen at Key Levels at Higher Timeframes (4H and higher) and usually have strong momentum (large candles with large bodies) and they usually follow a strong fundamental news change.
Retracements happen after a directional move in one direction. The price is usually moving slowly with smaller candles (smaller bodies and more wicks). They are short-lived and don’t have a fundamental reason for their move.

Reversal Patterns Strategies – Final Tips

Implementing reversal patterns can be beneficial, here is a summary to help you have the confidence to spot real market reversals and make sure you are not falling into the trap others do.

Do not rely only on Reversal Patterns alone. They are only one of a few tools you should use.
Use Reversal Patterns in line with the Market Narrative.
Use Reversal Patterns at key bank levels to get the highest probability of reversals you can find.
If your plan includes technical analysis tools such as the Fibonacci, or Pivot Points, you can use these tools to help add validity to your pattern.
Depending on what combination of tools, resources, and Reversal Patterns you choose this is how you can really Build Your Edge as a trader. The key point is to use the Reversal Pattern in confluence with other tools and not alone. For example, if you use MA Cross Over, then only use the Reversal Pattern at the time once the signal has occurred. If you use Pivot Points, then use Reversal Patterns only around Key Pivot Points, or if you are using the Fibonacci Retracement Levels. Another example is trading them around Key Fibonacci Retracement Levels, for example.

But remember to ALWAYS have a story or reasons why the price should reverse. We call this story “The Market Narrative”, regardless of what trading strategy you use because understanding Market Narrative allows you to trade with the Institutions and not against them.

Having said that, it is possible for a trader to build elite trading strategies around patterns that when used in context with the market.

Are Reversal Patterns Worth The Hype?

Trading Reversal Patterns provide traders with another way to read the market and spot where the bullish and bearish sentiment is currently and where it could turn only while it is used in context with other trading tools outlined in a trader’s plan and if the trader does not ignore the Market Narrative.

While being a contrarian and finding some interesting reversal trades with the highest probability Reversal Patterns, it is still strongly suggested that you test various Reversal Patterns in the markets and timeframes and backtest them along with your trading strategy because your experience could be different depending on how your view the market and what you use in your analysis.

The Most Powerful Reversal Patterns in Forex You Must Know