If you missed the most recent leg of the rally and have been waiting for a substantial pullback to start buying stocks, consider waiting for
a bullish reversal pattern to form as the major indices test support.
Now, $ YCS is back above both its 10 and 40 - week moving averages, as it pops its head above resistance of a 6 - month downtrend line on increasing volume and with
a bullish reversal pattern.
A breach of the descending trendline followed by an inverse head - and - shoulders breakout (
bullish reversal pattern).
As
a bullish reversal pattern, a true inverse head and shoulders will only occur at the bottom of a trend.
Against this backdrop, the S&P 500 has narrowly survived a retest of the 200 - day moving average, building on
a bullish reversal pattern early Friday.
The hammer is
a bullish reversal pattern that forms during a downtrend.
Holding that Rising 200 Day for dear life with
a bullish reversal pattern.
Additionally, it could be trying to form
a bullish reversal pattern as it coils in the low to mid 60s.
You notice how it too at one point had
a bullish reversal pattern in the right shoulder.
Inverse head and shoulders is considered to be
a bullish reversal pattern.
Inverse head and shoulders breakout —
a bullish reversal pattern, indicating a bearish - to - bullish trend change.