Rebound formations

Rebound formations are formations that are formed in a trend reversal. A rebound formation is an indication of a reversal in the current trend.

If you have identified a rebound formation you can get opportunities to buy or sell a stock. Rebound formations indicate that a new long-term trend direction are being formed in the opposite direction of the current trend. Examples of rebound formations are head-and-shoulder, double top, double bottom, rectangle, rising wedge and falling wedge.