Series 7: 9.4.2.2.2. Bullish Patterns

9.4.2.2.2. Bullish Patterns

Reverse head and shoulders—opposite pattern to the head and shoulders and predicts an upward trend in the stock above resistance.

Double bottom—a valley followed by a peak followed by another valley of approximately the same height as the first valley. The intervening peak is believed to be the “neckline,” and after the second valley, if prices rise above the neckline, then this confirms the formation of a double bottom, which signals the end of a bear (declining) trend.

Cup and