Reversal Chart Patterns: Triple Top, V-Shape, Rounding Bottom and Bump and Run

Triple Top (bearish reversal) chart pattern diagram

Reversal patterns are chart shapes that suggest a trend may be coming to an end. Alongside the well-known head and shoulders and double tops, several other reversal shapes appear on stock, crypto and forex charts.

Triple top and triple bottom

A triple top forms when price tests the same high three times and fails each time. It is generally seen as bearish once price breaks below the lows between the peaks. A triple bottom is the mirror image after a decline and is generally seen as bullish.

Triple Top (bearish reversal) chart pattern diagram
Triple Top (bearish reversal): a simplified illustration.

V-shape reversal

A sharp fall followed by an equally sharp rise (or the inverted version at a top). V-shapes are fast and hard to trade because there is little time to react and no pause to confirm the turn.

V-Shape Reversal (bullish) chart pattern diagram
V-Shape Reversal (bullish): a simplified illustration.

U-shape (rounding) reversal

A slow, gradual turn, where the trend loses momentum, moves sideways for a while and then reverses. Rounding bottoms often develop over weeks or months on daily charts.

Rounding Bottom (U-shape, bullish) chart pattern diagram
Rounding Bottom (U-shape, bullish): a simplified illustration.

Bump and run

A pattern where a steady trend suddenly turns into a steep, excited move (the “bump”), often driven by speculation, before collapsing back through the original trendline (the “run”). It reflects how overexcited moves can reverse sharply.

Bump and Run (bearish reversal) chart pattern diagram
Bump and Run (bearish reversal): a simplified illustration.

General principles for reversal patterns

  • A reversal pattern needs an existing trend to reverse.
  • Wait for confirmation: a close beyond the key level, ideally with higher volume.
  • Patterns on higher timeframes are usually more meaningful.
  • Many apparent reversals fail, so planning risk matters more than spotting the shape.

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This article is for education only and is not investment advice. Trading shares, cryptocurrencies, forex and other markets involves risk, including the loss of capital.

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