A double bottom chart pattern is a strong bullish price action signal that occurs at the end of a downtrend.
It happens when an equal, or almost equal, low forms during a downtrend, instead of another lower low.
The idea behind the pattern is that failure to make another lower low could be a signal of momentum leaving the trend.
The first low in the pattern becomes support that provides a strong bounce for the second, equal low.
As you can see from the image,a second horizontal line is also drawn at the middle peak. This is the traditional breakout point of the double bottom chart pattern. I’m going to refer to this line as the breakout line.
To get your profit target, you measure from the support line to the middle peak (or breakout line). Then you take that measurement and duplicate it upward, starting from the breakout level.
To learn more, i highly recommend you to get your copy of my ebook, click on the link in bio or send me a private message
2 269 minutes ago
💵🔑"There are no guarantees in trading. The sooner you accept that you sooner you can release your expectations and focus unconditionally on a proven process." 💸📉 Yvan Byeajee, The Essence of Trading Psychology in one Skill
This next Forex double top strategy is my favorite technique because it typically provides excellent reward to risk
ratios. In the example,you could have earned nearly 5x your risk. This technique typically provides a 4:1 or better
reward to risk ratio.To take the entry, you need to use another trading strategy that provides bearish entries near
the tops of cycles. I prefer to use a few specific price action signals, mainly the bearish engulfing pattern and
the shooting star (with confirmation and pullback). In the image,you can see a nice bearish engulfing pattern that occurred right at the resistance line.
Entry would be taken on the open of the next candlestick. The stop loss would be placed above the highest high in the double top.To learn more, i highly recommend you to get your copy of my ebook, click on the link in bio or send me a private message
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