Forex trading double bottom 8th


Forex trading double bottom 8th


No chart pattern is more common in trading than the double bottom or double top. In fact, this pattern appears so often that it alone may serve as proof positive that price action is not as wildly random as many academics claim. Price charts simply express trader sentiment and double tops and double bottoms represent a retesting of temporary extremes. If prices were truly random, why do they pause so frequently at just those points.

When prices fail forex trading double bottom 8th break support in down trending markets on multiple occasions, we are likely to see a powerful change of trend. forxe Such reversal signals are much more meaningful after extended downtrends. The common entry point (point where a trader opens a position) on a double bottom trade is on a move through the high of the two troughs (marked by Standard Entry on the chart below).

The high represents secondary resistance, which when penetrated, confirms a price reversal. Double tops and double bottoms are some of the most common price reversal patterns in the currency market. The familiar M- or W-shaped patterns appear regularly on anything from 15-minute charts to oduble studies. Forex double tops are very popular among traders as they signify a successful test and price rejection from a recent new high.




Forex trading double bottom 8th

Double trading forex bottom 8th


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