skip to main content
Coach's Playbook Posted by Team Topstep March 20, 2022

Reversal Patterns in Day Trading

Reversal Patterns

There are a couple reversal patterns in the Gold and Crude Oil futures markets that are in play right now. This week, the Topstep coaches are sharing some charts to help identify when and where these reversal patterns are taking place as, detail the corresponding data that give these patterns validity, and give a breakdown of the anticipated measured move targets.

The Head & Shoulders Top

The Head and Shoulders Pattern is historically considered to be one of the most reliable major reversal patterns in technical analysis. In today’s lesson, we will focus on the characteristics of the Head & Shoulders (H&S) Top, as well as the minimum price objective after a breakout, and stop loss levels.

Like most reversal patterns, the H&S is most recognizable to an analyst after it has been formed. The real trick lies in being able to identify the attributes of the formation while it’s setting up so you can be ready to initiate a position once the pattern is confirmed.

Read more about the Head & Shoulders Top here!

The Island Top

According to Investopedia, an Island Reversal “features a grouping of days separated on either side by gaps in the price action. This price pattern suggests that prices may reverse whatever trend they are currently exhibiting, whether from upward to downward or from downward to upward.”

Learn more about the Island Reversal pattern at