The double top and double bottom is another pattern you can add to your price action trading armory. Like all patterns you should practice the heck out of it and make sure you use the strategy that is inline with your trading personality. Don’t use the more aggressive approach if you are...
What is the double top and double bottom strategy? The double bottom pattern is a bullish reversal pattern, which indicates that the downward trend is about to reverse, whereas the double top pattern is a bearish reversal pattern, which indicates that the upward trend is about to reverse. Roun...
Double top and bottom patterns are chart patterns that occur when the underlying investment moves in a similar pattern to the letter "W" (double bottom) or "M" (double top). Double top and bottom analysis is used intechnical analysisto explain movements in a security or other investment, an...
commodity futurestrading strategymomentumterm-structureThis master thesis, first, re〆xamines the performance of the double﹕ort trading strategy on commodity futures using the data from January 1979 to October 2011doi:10.2139/ssrn.2614241Hossein Rad...
When you're looking for the best stocks to buy, double-bottom bases can point to the beginning of serious share-price gains. The double-bottom chart pattern is one of the most powerful and profitable bases out there. Here's how the double bottom can make you a winner....
Common in financial trading, the double top is a type of chart pattern that can be found when performing technical analysis. The chart
Trading Examples Now, let’s see this strategy in action. When trading, we should not rely solely on the Line On Close chart as it lacks the full price details. Hence, after spotting a double top or bottom, it’s prudent to switch to an OHLC chart to refine your entry. ...
Having two sets of Bollinger Bands on your chart is a much more effective way to pick a top or bottom in currencies. In addition to identifying levels to pick tops and bottoms, the double Bollinger Bands can also be very helpful in determining the market environment. One of the most ...
Finally, it is safer to trade stocks trading above their 200-day moving averages, but it is not an absolute necessity. Special Considerations The advantage of this strategy is it gives traders an opportunity to hold out for a better entry point on an up-trending stock or to be more sure...
Part of the Series Forex Trading Strategy & Education One of the reasons so many people are attracted to trading forex compared to other financial instruments is that with forex, you can usually get much higher leverage than you would with stocks. While many traders have heard of the word ...