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  1. Beginner
    Early Stages for Beginners
    8 Topics
  2. Forex Terminology
    11 Topics
  3. Margin & Leverage
    2 Topics
  4. Personal Psychology Questions
    2 Topics
  5. Psychology for Beginners
    7 Topics
  6. Intermediate
    Identifying Scams
    2 Topics
  7. Brokers for Beginners
    5 Topics
  8. Technical Analysis
    13 Topics
  9. Market Structure
    5 Topics
  10. Completion
    Risk Management for Beginners
    8 Topics
  11. Fundamental Analysis
    9 Topics
  12. Advanced
    Using Indicators
    6 Topics
  13. Technical Analysis (Part 2)
    8 Topics

Reversal Breakouts in Forex Trading

Reversal breakouts appear in the market when there is a sudden change in sentiments. They also tell us that there is a substantial shift in demand and supply in the market. These patterns are common at crucial support/resistance levels, which are also the main liquidity points in Forex. Reversal Forex signals include Double tops, Head and Shoulders, Rising Wedge, Double Bottom, Inverted Head and Shoulder, and Falling Wedge patterns.

They have three main characteristics.

  • A strong trend: First, we see a parabolic move in one direction.
  • A pause: Price then goes into hibernation, ranging within a particular region – mainly at critical support or resistance areas.

Reverse: A breakout occurs in the opposite direction.