Understanding the Sushi Roll Reversal Pattern | Motilal Oswal

Understanding the Sushi Roll Reversal Pattern

Profitable traders and investors always look for patterns and indicators to help predict price movements. One such pattern is the Sushi Roll Reversal Pattern; its unusual name has caught technical analysts' eye as it provides potential insights into trend reversals. So, let's understand the Sushi Roll Reversal Pattern and how to use it. 

What is a reversal?

Before exploring the Sushi Roll Reversal Pattern, let's understand what reversal is. Reversals occur when the trend direction of stocks or assets shifts unexpectedly. This alerts traders that trading conditions might no longer be favorable and signals when to exit their trades. Reversal patterns can also signal traders of new opportunities to trade and start a trend that should be watched out for.

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What is the Sushi Roll Reversal Pattern?

Mark Fisher discussed the Sushi Roll Reversal Pattern in his book, "The Logical Trader." This technical analysis technique involves studying candlestick charts. Each price bar on such charts represents data from multiple periods. This technique carefully evaluates ten candles from each Sushi Roll Pattern to track market trends.

Five of the 10 candles feature internal movements with limited swings. Meanwhile, five outer candles around these interior candles show significant swings between higher highs and lower lows, creating a design resembling sushi rolls.

The number of bar patterns can be adjusted between 10 and 20, an essential detail to remember. Furthermore, time frames can differ. Also, unlike bullish or bearish patterns that involve only one bar at once, this pattern consists of many bars instead of just one.

How to trade using Sushi Roll Reversal Pattern?

Traders generally use this Sushi Roll Reversal Pattern to search for both uptrends and downtrends. When on a downtrend, this signal tells traders to buy, cover, or exit short positions in securities. Yet, when an uptrend begins, it indicates they sold long positions or entered short ones in stock/securities.

Bullish bias occurs when five consecutive candles close in green. On the other hand, Bearish bias occurs when five consecutive candles close red. The Bullish bias is considered positive, while the bearish bias indicates negative signs.

Fisher explained the Outside Reversal pattern as another trend reversal pattern. So traders looking for long-term investment success can consider this. It is similar to the Sushi Reversal Pattern. Yet, its main difference lies in taking daily data from Monday to Friday rather than weekly. 

Sushi Roll Reversal Pattern: Advantages and Disadvantages


  • Effectiveness in identifying trend reversals.
  • Applicability across any time frame.
  • Supports both opening and closing trades.


  • It must be combined with other analysis techniques for optimal use.
  • It isn't frequently available in the charts.

We urge you to keep the above-mentioned points in mind while working with the Sushi Roll Reversal Pattern.


Related Articles:  Pullback Trading: Definition, Strategy and Risk Factors | Mastering Market Dynamics with the Williams R Indicator | What Type of Stock Market Trader Are You


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