• About
  • Blog
  • Best Brokers Worldwide
  • Contact
  • Home
  • Forex
    EUR/USD Price Analysis: Seems vulnerable near mid-1.0500s amid geopolitical tensions

    EUR/USD Price Analysis: Seems vulnerable near mid-1.0500s amid geopolitical tensions

    Australian Dollar extends gains on higher commodity prices, geopolitical tension in the Middle East

    Australian Dollar extends gains on higher commodity prices, geopolitical tension in the Middle East

    Proof-of-Stake-powered Cryptocurrency COSMOS Launches on 1xBit

    Proof-of-Stake-powered Cryptocurrency COSMOS Launches on 1xBit

    Markets turn cautious as focus shifts to US data, FOMC Minutes

    Markets turn cautious as focus shifts to US data, FOMC Minutes

    Dollar soars on hopes the US could avoid recession despite the aggressive Fed

    Dollar soars on hopes the US could avoid recession despite the aggressive Fed

    Putin allows Russian banks under sanctions to halt some FX operations

    Putin allows Russian banks under sanctions to halt some FX operations

    South Korea probes $3.1bn crypto-linked forex transactions

    South Korea probes $3.1bn crypto-linked forex transactions

    All ‘Ethereum killers’ will fail: Blockdaemon’s Freddy Zwanzger

    All ‘Ethereum killers’ will fail: Blockdaemon’s Freddy Zwanzger

    Paraguay’s crypto framework one step away from becoming law

    Paraguay’s crypto framework one step away from becoming law

  • Education
    Q4 Trade Opportunity: EUR/CAD Long-Term Reversal as Oil, Inflation Rise

    Q4 Trade Opportunity: EUR/CAD Long-Term Reversal as Oil, Inflation Rise

    Australian Dollar Dips as US Dollar Rallies After Israel Attack. Lower AUD/USD?

    Australian Dollar Dips as US Dollar Rallies After Israel Attack. Lower AUD/USD?

    AUD/USD Rises Despite Wall Street Selloff as Chinese Flooding Lifts Coal Prices

    AUD/USD Rises Despite Wall Street Selloff as Chinese Flooding Lifts Coal Prices

    Euro Forecast: EUR/USD Outlook Bleak as Traders Rush for US Dollars

    Euro Forecast: EUR/USD Outlook Bleak as Traders Rush for US Dollars

    RAND UPDATE: ZAR STRENGTH MAY BE SHORT LIVED AHEAD OF BUDGET SPEECH

    RAND UPDATE: ZAR STRENGTH MAY BE SHORT LIVED AHEAD OF BUDGET SPEECH

    CRUDE OIL PRICES MAY RISE ON US STIMULUS HOPES

    CRUDE OIL PRICES MAY RISE ON US STIMULUS HOPES

    IG CLIENT SENTIMENT DATA SENDING BEARISH SIGNALS FOR USD/ JPY, AUD/USD, GBP/ USD

    IG CLIENT SENTIMENT DATA SENDING BEARISH SIGNALS FOR USD/ JPY, AUD/USD, GBP/ USD

    EUR/AUD BREAKOUT COULD GROW LEGS

    EUR/AUD BREAKOUT COULD GROW LEGS

    CHINESE YUAN (CNH) DRIVING CURRENCY MARKETS; HOWEVER, TRUMP RISK REMAINS

    CHINESE YUAN (CNH) DRIVING CURRENCY MARKETS; HOWEVER, TRUMP RISK REMAINS

  • Commodities
    Abu Dhabi’s oil champion ADNOC bets on global expansion

    Abu Dhabi’s oil champion ADNOC bets on global expansion

    Oil prices jump as Middle East violence rattles markets

    Oil prices jump as Middle East violence rattles markets

    Panamanian trade unions reach agreement with government on essential commodities

    Panamanian trade unions reach agreement with government on essential commodities

    Dollar surges and stocks tumble as traders weigh global growth outlook

    Dollar surges and stocks tumble as traders weigh global growth outlook

    Can commodities make a comeback?

    Can commodities make a comeback?

    CME looks to lure retail traders with daily options frowned on in Europe

    CME looks to lure retail traders with daily options frowned on in Europe

    The traders earning $6m+ outside banks and hedge funds

    The traders earning $6m+ outside banks and hedge funds

    CFTC eyes potential oversight of cryptocurrencies, carbon trading – commissioner

    CFTC eyes potential oversight of cryptocurrencies, carbon trading – commissioner

    Palladium: Completely Reverse The Rumors for a Bubble Burst

    Palladium: Completely Reverse The Rumors for a Bubble Burst

  • Cryptocurrencies
    Crypto’s decentralization problem: The word is used too often to justify bad product decisions

    Crypto’s decentralization problem: The word is used too often to justify bad product decisions

    Bitcoin Is Set to Thrive in October—No Matter Where Rates Go, Analyst Says

    Bitcoin Is Set to Thrive in October—No Matter Where Rates Go, Analyst Says

    Ripple Is Considering Buying Bankrupt Crypto Lender Celsius’ Assets: Report

    Ripple Is Considering Buying Bankrupt Crypto Lender Celsius’ Assets: Report

    Yen shorts crumble as hot FX trade comes to end

    Yen shorts crumble as hot FX trade comes to end

    Brevan Howard Scores Largest Crypto Hedge Fund Launch Ever

    Brevan Howard Scores Largest Crypto Hedge Fund Launch Ever

    Crypto Is Coming to Esports: The Games and Economics of Tomorrow

    Crypto Is Coming to Esports: The Games and Economics of Tomorrow

    Singapore’s crypto aspirations shaken by Three Arrows collapse

    Singapore’s crypto aspirations shaken by Three Arrows collapse

    Crypto exchange Coinbase looks to expand footprint in Europe

    Crypto exchange Coinbase looks to expand footprint in Europe

    How ETF investors can bet on the crypto crash

    How ETF investors can bet on the crypto crash

FX Access
  • Home
  • Forex
    EUR/USD Price Analysis: Seems vulnerable near mid-1.0500s amid geopolitical tensions

    EUR/USD Price Analysis: Seems vulnerable near mid-1.0500s amid geopolitical tensions

    Australian Dollar extends gains on higher commodity prices, geopolitical tension in the Middle East

    Australian Dollar extends gains on higher commodity prices, geopolitical tension in the Middle East

    Proof-of-Stake-powered Cryptocurrency COSMOS Launches on 1xBit

    Proof-of-Stake-powered Cryptocurrency COSMOS Launches on 1xBit

    Markets turn cautious as focus shifts to US data, FOMC Minutes

    Markets turn cautious as focus shifts to US data, FOMC Minutes

    Dollar soars on hopes the US could avoid recession despite the aggressive Fed

    Dollar soars on hopes the US could avoid recession despite the aggressive Fed

    Putin allows Russian banks under sanctions to halt some FX operations

    Putin allows Russian banks under sanctions to halt some FX operations

    South Korea probes $3.1bn crypto-linked forex transactions

    South Korea probes $3.1bn crypto-linked forex transactions

    All ‘Ethereum killers’ will fail: Blockdaemon’s Freddy Zwanzger

    All ‘Ethereum killers’ will fail: Blockdaemon’s Freddy Zwanzger

    Paraguay’s crypto framework one step away from becoming law

    Paraguay’s crypto framework one step away from becoming law

  • Education
    Q4 Trade Opportunity: EUR/CAD Long-Term Reversal as Oil, Inflation Rise

    Q4 Trade Opportunity: EUR/CAD Long-Term Reversal as Oil, Inflation Rise

    Australian Dollar Dips as US Dollar Rallies After Israel Attack. Lower AUD/USD?

    Australian Dollar Dips as US Dollar Rallies After Israel Attack. Lower AUD/USD?

    AUD/USD Rises Despite Wall Street Selloff as Chinese Flooding Lifts Coal Prices

    AUD/USD Rises Despite Wall Street Selloff as Chinese Flooding Lifts Coal Prices

    Euro Forecast: EUR/USD Outlook Bleak as Traders Rush for US Dollars

    Euro Forecast: EUR/USD Outlook Bleak as Traders Rush for US Dollars

    RAND UPDATE: ZAR STRENGTH MAY BE SHORT LIVED AHEAD OF BUDGET SPEECH

    RAND UPDATE: ZAR STRENGTH MAY BE SHORT LIVED AHEAD OF BUDGET SPEECH

    CRUDE OIL PRICES MAY RISE ON US STIMULUS HOPES

    CRUDE OIL PRICES MAY RISE ON US STIMULUS HOPES

    IG CLIENT SENTIMENT DATA SENDING BEARISH SIGNALS FOR USD/ JPY, AUD/USD, GBP/ USD

    IG CLIENT SENTIMENT DATA SENDING BEARISH SIGNALS FOR USD/ JPY, AUD/USD, GBP/ USD

    EUR/AUD BREAKOUT COULD GROW LEGS

    EUR/AUD BREAKOUT COULD GROW LEGS

    CHINESE YUAN (CNH) DRIVING CURRENCY MARKETS; HOWEVER, TRUMP RISK REMAINS

    CHINESE YUAN (CNH) DRIVING CURRENCY MARKETS; HOWEVER, TRUMP RISK REMAINS

  • Commodities
    Abu Dhabi’s oil champion ADNOC bets on global expansion

    Abu Dhabi’s oil champion ADNOC bets on global expansion

    Oil prices jump as Middle East violence rattles markets

    Oil prices jump as Middle East violence rattles markets

    Panamanian trade unions reach agreement with government on essential commodities

    Panamanian trade unions reach agreement with government on essential commodities

    Dollar surges and stocks tumble as traders weigh global growth outlook

    Dollar surges and stocks tumble as traders weigh global growth outlook

    Can commodities make a comeback?

    Can commodities make a comeback?

    CME looks to lure retail traders with daily options frowned on in Europe

    CME looks to lure retail traders with daily options frowned on in Europe

    The traders earning $6m+ outside banks and hedge funds

    The traders earning $6m+ outside banks and hedge funds

    CFTC eyes potential oversight of cryptocurrencies, carbon trading – commissioner

    CFTC eyes potential oversight of cryptocurrencies, carbon trading – commissioner

    Palladium: Completely Reverse The Rumors for a Bubble Burst

    Palladium: Completely Reverse The Rumors for a Bubble Burst

  • Cryptocurrencies
    Crypto’s decentralization problem: The word is used too often to justify bad product decisions

    Crypto’s decentralization problem: The word is used too often to justify bad product decisions

    Bitcoin Is Set to Thrive in October—No Matter Where Rates Go, Analyst Says

    Bitcoin Is Set to Thrive in October—No Matter Where Rates Go, Analyst Says

    Ripple Is Considering Buying Bankrupt Crypto Lender Celsius’ Assets: Report

    Ripple Is Considering Buying Bankrupt Crypto Lender Celsius’ Assets: Report

    Yen shorts crumble as hot FX trade comes to end

    Yen shorts crumble as hot FX trade comes to end

    Brevan Howard Scores Largest Crypto Hedge Fund Launch Ever

    Brevan Howard Scores Largest Crypto Hedge Fund Launch Ever

    Crypto Is Coming to Esports: The Games and Economics of Tomorrow

    Crypto Is Coming to Esports: The Games and Economics of Tomorrow

    Singapore’s crypto aspirations shaken by Three Arrows collapse

    Singapore’s crypto aspirations shaken by Three Arrows collapse

    Crypto exchange Coinbase looks to expand footprint in Europe

    Crypto exchange Coinbase looks to expand footprint in Europe

    How ETF investors can bet on the crypto crash

    How ETF investors can bet on the crypto crash

FX Access
No Result
View All Result

How to Trade Double Tops and Double Bottoms

poweradmin by poweradmin
October 7, 2020
Home Education
Share on FacebookShare on Twitter

When a double top or double bottom chart pattern appears, a trend reversal has begun.

Let’s learn how to identify these chart patterns and trade them.

Double Top

A double top is a reversal pattern that is formed after there is an extended move up.

The “tops” are peaks which are formed when the price hits a certain level that can’t be broken.

After hitting this level, the price will bounce off it slightly, but then return back to test the level again.

If the price bounces off of that level again, then you have a DOUBLE top!

In the chart above you can see that two peaks or “tops” were formed after a strong move up.

Notice how the second top was not able to break the high of the first top.

This is a strong sign that a reversal is going to occur because it is telling us that the buying pressure is just about finished.

With the double top, we would place our entry order below the neckline because we are anticipating a reversal of the uptrend.

Wow! We must be psychic or something because we always seem to be right!

Looking at the chart you can see that the price breaks the neckline and makes a nice move down.

Remember that double tops are a trend reversal formation so you’ll want to look for these after there is a strong uptrend.

You’ll also notice that the drop is approximately the same height as the double top formation.

Keep that in mind because that’ll be useful in setting profit targets.

Double Bottom

The double bottom is also a trend reversal formation, but this time we are looking to go long instead of short.

These formations occur after extended downtrends when two valleys or “bottoms” have been formed.

You can see from the chart above that after the previous downtrend, the price formed two valleys because it wasn’t able to go below a certain level.

Notice how the second bottom wasn’t able to significantly break the first bottom.

This is a sign that the selling pressure is about finished, and that a reversal is about to occur.

Will you look at that!

The price broke the neckline and made a nice move up.

See how the price jumped by almost the same height as that of the double bottom formation?

Remember, just like double tops, double bottoms are also trend reversal formations.

You’ll want to look for these after a strong downtrend.

Tags: Important Chart Patterns
poweradmin

poweradmin

Next Post
How to Trade the Head and Shoulders Pattern

How to Trade the Head and Shoulders Pattern

Please login to join discussion

Recommended.

Q4 Trade Opportunity: EUR/CAD Long-Term Reversal as Oil, Inflation Rise

Q4 Trade Opportunity: EUR/CAD Long-Term Reversal as Oil, Inflation Rise

October 9, 2023
Australian Dollar Dips as US Dollar Rallies After Israel Attack. Lower AUD/USD?

Australian Dollar Dips as US Dollar Rallies After Israel Attack. Lower AUD/USD?

October 9, 2023
China-EU relationship is at a crossroads, top official says in Beijing

China-EU relationship is at a crossroads, top official says in Beijing

October 9, 2023
The U.S. is weaker now than when we downgraded in 2011, former S&P ratings chairman says

The U.S. is weaker now than when we downgraded in 2011, former S&P ratings chairman says

October 9, 2023
Abu Dhabi’s oil champion ADNOC bets on global expansion

Abu Dhabi’s oil champion ADNOC bets on global expansion

October 9, 2023
FX Access

FX Access tells you what’s new in politics, investment and economic, why it matters, how it works and what you need.

Follow Us

Categories

  • Commodities
  • Cryptocurrencies
  • Economic
  • Education
  • Forex

Recent News

Q4 Trade Opportunity: EUR/CAD Long-Term Reversal as Oil, Inflation Rise

Q4 Trade Opportunity: EUR/CAD Long-Term Reversal as Oil, Inflation Rise

October 9, 2023
Australian Dollar Dips as US Dollar Rallies After Israel Attack. Lower AUD/USD?

Australian Dollar Dips as US Dollar Rallies After Israel Attack. Lower AUD/USD?

October 9, 2023
  • About
  • Blog
  • Best Brokers Worldwide
  • Contact

© 2022 FX Access | All rights reserved.

No Result
View All Result
  • Home
  • Forex
  • Education
  • Commodities
  • Cryptocurrencies

© 2022 FX Access | All rights reserved.