Summary of the Major Reversal Patterns

In the three preceding studies we have analyzed seven types of technical formations
which occur at reversals in stock price trends and have discussed their usefulness in
forecasting. Of these seven, five are of major importance because of their frequent
appearance, or great reliability, or both. These are:
1. The Head and Shoulders
2. The Common or Rounding Turn
3. The Triangle
a. Symmetrical
b. Right-Angle, Ascending and Descending
4. The Multiple Tops and Bottoms
5. The Complex Patterns
The other two formations – the Wedge and the Broadening Tops – were studied
with the above not because of their major importance but rather because of their
pictorial
relation to the major types.