Double top and double bottom

Posted by

The double top chart pattern is a reversal bearish reversal pattern. It is formed when a bullish trend has hit a resistance level causing the price to retract, then for the market to retry to break the previous high, failing and retracing even further and breaking the previous low reversing the trend to a bearish trend.

Screen Shot 2016-09-03 at 20.34.09.png

The double bottom is the same in reverse making it a bullish reversal pattern. It is formed when a bearish trend has hit a support level, causing the price to retrace, then for the market to try and continue the bearish trend by breaking the support but failing to once again causing the price to retrace past the previous low and reversing the trend to a bullish trend.

Screen Shot 2016-09-03 at 20.34.20.png

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s