Last Updated: Dec 07, 2022 Value Broking 7 Mins 2.4K

Sushi roll reversal pattern meaning: Sushi roll reversal pattern definition says it identifies significant market reversals. This pattern requires the examination of ten candles to comprehend the shift in market mood. The first five candles move horizontally with no significant oscillations, and the next five candles swallow the up and downs of the first five candles. The formation can display bullish or negative indications and represent traders and investors.

When opposed to red-negative closures, the closing of the previous five candles in green indicates a bullish bias. A bearish bias denotes a negative finish in the last five candles. The technique evaluates the energy in the candles to determine the breakout possibility. Mark Fisher, who conducted an extensive study on market tops and bottoms, outlined the approach and discussed this Sushi Roll Reversal Pattern technique.

The central concept is to identify a structure that indicates a shift in the mood by having the market test higher highs and lower lows. It suggests a lack of patience on the side of buyers or sellers and a possible shift in trend, resulting from various factors such as economic progress, company announcements, worldwide news, and so on.

This Sushi Pattern approach is helpful in a variety of ways. It is one of the first indicators to detect a trend reversal and serves as a criterion for existing positions on reversal indications. As a trader, you should identify the pattern in the trading chart. You must grasp the skill to identify and potentially use a strategy that will be best for you. Learning trends based on the stock or commodity you want to trade, you can use a timeframe and match your data over the customized time.  

The various techniques help traders and investors decide whether to go long or short. If Sushi Roll’s identification is ahead of time, the profits might be highly significant. The Sushi Roll can be useful at various times, including hourly, daily, weekly, and monthly. For a more precise analysis, if the last two candlesticks move decisively in the same direction, the confirmation is deemed to be extremely strong.

Sushi Roll Reversal Pattern’s base is on candlestick formation, in which price plays an important part. A solid bullish long body position indicates a probable bullish scenario with an upward breakthrough. A reversal pattern may indicate a shift in emotion and the start of a new trend. 

Sushi Roll’s strong affirmation has a positive impact on the overall picture. 

The appearance of an upward development on the monthly/yearly chart completely alters the daily mood. The stop-loss remains at the lowest low in the positive breakout, while it is the highest among the flaming candles in the negative mood.

What is a Reversal Pattern?

The Sushi roll reversal candlestick pattern is an essential technical indicator traders employ to determine underlying asset price changes. These are similar to bar charts, but they are more informative. Candlesticks represent an underlying asset’s opening, closing, high, and low points in a vertical bar graph, eliminating the need to compare numerous trading charts to comprehend asset price movement. 

Aside from that, candlestick charts are useful for identifying potential pattern reversals in the linear trend. There are various trend reversal candlestick forms, each with a distinct significance level. In this post, we will discuss the most strong and prevalent ones and how to understand them while trading.

The emergence of candlesticks that signify the end of an existing trend refers to a reversal pattern (uptrend or downtrend). When such a pattern develops in a downtrend, it denotes a reversal and the beginning of a purchasing spree. Whenever a trend reversal pattern occurs in an uptrend, it alerts traders to the possibility of the bullish run coming to an end and the commencement of a collapse.

Candlestick patterns are visual patterns that assist traders in seeing when market sentiment is altering. That’s why many investors prefer candlestick charts to other trading tools. However, any trend reversal indicator must be consistent with other popular and effective trading tools.

Upward and Downward Pattern

Traders often seek upward and downward trends, which are prevalent in most share market patterns. The appearance of a Sushi Pattern during a downturn, as previously said, indicates the probability of a trend reversal. It alerts traders to the possibility of buying stocks or other assets or exiting a short position. When the sushi roll pattern appears during an upswing, it signals traders to liquidate long positions or enter a temporary position.

Identifying the Pattern

Although Mark Fisher indicated that the sushi roll reversal has 5 or 10 patterns, neither these numbers nor the time of the bars should be absolute. There might be a variation in the number of bar patterns. As a trader, you must decide which pattern best matches the deal. It is preferable to learn to spot patterns based on the stock or asset you wish to sell and choose a period corresponding to your general trading preferences.

Fisher also explains a second trend reversal phenomenon. An outside reversal week has been a trend that favors traders prepared to commit for the long run. This trend is comparable to the sushi-roll reversal pattern in most situations, but its base was based on daily data from a trading week from Monday to Friday. Thus, the tendency appears to be that five-day trading outside a week is likely to replace an inside week, also referred to as an engulfing week, involving higher highs and lower lows, lasting two trading weeks or ten trading days.

Using this combination of patterns which include inside and outside trading ranges. This helps you to find the potential market for reversals.  The market reversal can help you make a profit and avoid heavy losses. The best part of this technique is that it signals a potential price reversal much earlier than other chart patterns such as head shoulder, pull back, etc. The sushi roll reversal pattern is customizable and can be applied in your timeframe. 


Finally, the sushi roll brings up visions of a magnificent Japanese feast of cured fish, rice, and wasabi for most of us. However, the Sushi Roll Reversal Pattern technique is a stock movement pattern that can be useful for examining a stock’s success and anticipating future stock market changes. 

Trade like this is time-critical. The timing plays an important role in making your trade entry or exit. The techniques such as sushi roll, rolling inside, reversal, or outside reversal, when used in proper combination and use a confirmation indicator, these trading tactics will help traders to generate high revenue in the stock market.

In short, this Sushi Pattern is more accurate than other trend reversal patterns. Many traders, however, do not follow this due to a lack of knowledge. If the pattern is correctly identified and analyzed, it draws a significant profit. It is a criterion reflecting the exit position during the trend reversal period. Risk is an inherent component of trading that is unavoidable—techniques such as sushi roll reversal help reduce the danger involved.

The risk lies in the type of security and the price you are willing to invest in these technical trades. As a professional trader or advisor, these technique is not easy to make an application for the trade. But with proper research and practice, you can use this technique in your trading.

Frequently Asked Questions (FAQs)

Five of the ten candles show narrow fluctuations with little swings. 5 outer candles suggest considerable swings of the interior candles, i.e., higher highs and lower lows. Sushi rolls appear in the resultant design.

An upswing suggests the trader sells an extended position and enters a short position. On the other hand, the Downtrend indicates the probability of a trend reversal. The Sushi Roll Reversal Pattern recommends that traders in a decline purchase a short position or leave.

The pattern that is used for long-term trading is called an outside reversal. The outside reversal is similar to the sushi roll, but this pattern starts from daily data starting from the Monday date to the ending Friday. This takes around 10 days and occurs on a five-day and inside a week, followed by an outside engulfing or high or low stock trend.

Reversal trading can be profitable if executed with proper analysis, risk management, and discipline. However, success depends on market conditions, timing, and the trader’s skill in identifying reliable reversal signals.