A bullish reversal pattern may form when sentiment changes on a stock that has been in an downtrend.

Head and Shoulder -Bottom.

The Head and Shoulders pattern is one of the most widely known and recognized patterns. The duration for this pattern is generally several months. The trading volume generally diminishing from the left of the pattern to the right. The neckline could slope upward or downward although it is shown level here. As with all patterns, wait for confirmation. The pattern is only valid if the price closes above the neckline. To calculate the predicted target price take the neckline and subtract it from the lowest price in the head. This is the formation height. Add the formation height from the neckline to give you the predicted target price. There are variations to this pattern, not shown here, called "complex head and shoulders" patterns in which you may have multiple shoulders or heads or both.

Double Bottom.

A double bottom formation is also a very recognizable with two well defined troughs that are usually close in price. The duration of this pattern is usually several months. To calculate the predicted target price, first calculate the height of the formation by subtracting the lowest price in the formation from the highest price (confirmation line) in the formation. Then add the formation height to the confirmation line. The likelihood that price will throwback after a breakout are high so you could even wait until a throwback to place a trade.

Rectangular Bottom.

A rectangular bottom is a great pattern to trade. It's easy to identify and performs really well. The duration of this pattern can be 6 months or more. Trading volume generally increases with the length of the pattern. To calculate the predicted target price, subtract the higher trend line from the lower trendline and add this to the higher trendline or confirmation line. Throwbacks after a breakout occur more than half of the time.

Rounding Bottom.

A rounding bottom is a pattern that generally takes 6 months or more to form. Trading volume is usually heavier near the sides of the bowl than in the middle. A breakout is defined when the price closes above the left lip of the saucer. To calculate the minimum price move, subtract the lowest low from the right saucer lip. Add this difference to the right saucer lip and this is the minimum expected price move.

Falling Wedge.

The falling wedge is also a great pattern to trade. The duration of this pattern is usually 3 months or less. Trading volume tends to wane as the pattern forms before the breakout. Throwbacks occur in almost half of the patterns. At a minimum, prices should rise to the top of the formation from the breakout.