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Bearish and Bullish Signal Reversed Point & Figure Formations

A Bearish Signal Reversed formation appears similar to a Bearish Signal formation, however, it contains not four but seven vertical columns. The first six columns provide the classic pattern of lower tops and lower bottoms. The seventh column, however, is reversed by a steady influx of demand without forming any sort of a base of accumulation.

Likewise, a Bullish Signal Reversed formation appears similar to a Bullish Signal formation but it also contains the seven vertical columns instead of four. A breakout from a base of accumulation does not automatically guarantee a profit on the long side of the market, nor does a breakout from a top of distribution automatically guarantee a profit on the short side of the market.

Bearish Signal Reversed Point Formation	Bullish Signal Reversed Point Formation