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What is double top & bottom patterns?

After a Strong move towards Upwards/Downward market does show a pattern called Double Top/Bottom. It is a Reversal Pattern. Most of the people familiar with this Reversal Pattern but they end up searching for a New system just because they don't know how to use it. Well here i am gonna show you the actual way to trade double Top/Bottom.
First Look at this images which shows the Idea of Double Top and Bottom Patterns.
Two things you have to notice here-

1.The Area Between point 1 and 2.
By these two images we can elaborate that market does react like this but the question arise that "How to read them?"

1. At point 2 Market should not close above the Previous Highest Close.
2. At point 2 Candle high at least touch the previous Highest Close.
3. Always Look Left.(For Support and Resistance)
Lets see some examples.

In above Figure every condition satisfy that's why it can be called a valid double top setup.
Now the lets look at image below it does look like a double top but it is not a valid setup as per rules.
it is time to learn some double bottom patterns too After that we will take a look
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AndreK avatar
AndreK 27 May

Good job!

Ne_juli avatar
Ne_juli 28 May

great article

klintons avatar
klintons 31 May

Loti labi !

WallStreetBlog avatar

buen articulo!

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La acción del precio es el análisis de los movimientos del precio de cualquier par de divisas o activo cotizado,esta forma de análisis del mercado no utiliza ningún tipo de indicador, tan solo utiliza los patrones gráficos que va dejando el precio en su movimiento.Esta forma de analizar el mercado es una de las mas efectivas ya que el precio es el indicador mas fiable y no tendremos ningún tipo de retardo en sus señales como ocurre con los indicadores técnicos, porque estos reaccionan al movimiento del precio, por lo que siempre irán por detrás del precio en sus señales.
En este articulo voy a explicar como realizar trading con uno de los patrones de acción del precio mas efectivo .."el doble suelo o doble techo" ,también podría darse una ampliación de este patrón con un triple suelo o techo , aunque algunos traders crean que es demasiado temerario realizar trading de forma tan simple y sin el apoyo de un indicador deberían saber que lo mas simple es lo que mejor funciona en el mercado y lo que realmente es temerario es entrar en el mercado tarde, cuando el indicador confirma la operación y el precio ya ha terminado su movimiento.Siempre hay que advertir que este tipo de patrone
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hrustiashka avatar

thank you for sharing

fxsurprise8 avatar

good illustrations

chytry_dziad avatar

very nice

Sharpshooter avatar

Важно знать эти паттерны. Спасибо.

paglu avatar
paglu 4 Oct.

nice article

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1.0 Introduction
Just like most traders, when I started out trading Forex, it was a very rough patch for me. I jumped from indicator to indicator and for each one I always felt like I was going to finally dominate Forex and maybe appear on Forbes within a month or so. But that was not the story. Trading Forex no matter how easy it may seem, choosing between buy or sale and being right is one of the hardest jobs on earth and yet the most profitable. But with time, I got to learn more about the market and my use of indicators faded because I just got that feeling of when I could look at market and immediately tell if to trade or stay away from trading. In this article I will discuss one of the things I look at when trading; the double tops and bottoms.
2.0 Double Tops and Double Bottoms
This is one of the most reliable price reversal formations and for people that trade XAU/USD I think they would strongly agree.
2.1 Double Top

A double top is a reversal pattern which is usually formed at the end of the strong bullish movement. The tops are formed when the price hits a certain level and that can’t be broken. When the price reaches this level, it bounces off slightly and then return…
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wmndave avatar
wmndave 22 Aug.

priceaction113 you wait for the second bottom to be formed and let the price retrace to the neckline

RIANNA avatar
RIANNA 23 Aug.

good work)

alec77 avatar
alec77 24 Aug.

Text book perfect:)

HOME avatar
HOME 28 Aug.

Always rely on the theoretical basis of practice

HOME avatar
HOME 28 Aug.

You do very well

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The Double Top and Double Bottom are reversal patterns. Both patterns are very popular as investors are looking for a new trend, since the current trend is showing signs of a reversal. These chart patterns often create a chart what looks like a "W" (for a double bottom) or an "M" (double top).
The Double Top:
Characteristics of this pattern are that we have an attempt to break above the previous high, but the horizontal resistance holds the price and a new trend begins. As a result, we have two consecutive peaks, which are more or less equal. Recently, we had a very good example of double top pattern in NZD/USD (Picture 1). As you can see, the first element of the Double Top is that the price creates a first top. Then, it falls down and starts creating another move up. The point where the prices reverses to support after the first fall and starts ascending to create another top. The support is important for the final stage where we can measure the TP level.
In the second part, the price starts to move back up towards the resistance. IF the price stalls at the previous resistance and sells off, we have only two elements of the Double Top pattern in place and we still need a confirm…
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amerfx86 avatar
amerfx86 7 June

Very good chance to catch good price on double top or bottom

Sennna88 avatar
Sennna88 7 June


P22498 avatar
P22498 9 June


FX90 avatar
FX90 9 June

good article

Sennna88 avatar
Sennna88 9 June

Thanks guys!

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This article will serve as a precursor to my next article in the series, where I go into detail describing my Bollinger Band Breakout Strategy. The article aims to provide a good foundation on Bollinger Bands as a technical analysis tool.
Bollinger Bands are named after the creator John Bollinger. As pictured on the right.
He is a technical analyst that developed the tool as a measure of volatility. He has wrtten a book titled "Bollinger on Bollinger Bands" and is considered the foremost expert on the subject.
He also currently runs a website and has a pay service where he analyzes the markets for setups as per different bollinger band strategies he has developed.
Without going into excessive detail on the construction of Bollinger Bands, to briefly illustrate I will provide some examples of different types of setups and information that can be obtained from the bands. The bands themselves are a measure of volatility based on previous price action. They utilize the simple moving average and the amount of data to be measured back is input by the user. The standard settings, and often the default is based on a 20 period Moving average.
I will illustrate some of the com…
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MobNaga avatar
MobNaga 30 Oct.

bbnads, I like too.

alincik avatar
alincik 31 Oct.

Well done! Good luck!

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Valeriia_Novikova avatar

Thanks, useful article ! My best wishes to you!

forexfunction avatar

nice explanation .
this is really helpful for us.
we want more article like this.

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