What is the Double Bottom Chart Strategy in Forex Trading - forex trading courses in malta

What is the Double Bottom Chart Strategy in Forex Trading ~ forex trading courses in malta

Double Bottom Chart Pattern in Forex Trading

Forex trading now being very popular through out the world . Many investors like to trade in Forex than stock markets . But , Without proper basic knowledge , traders or investors can loss all their valuable money. So before investment in Forex Market, traders should learn few basic fundamentals & strategies to reduce risk . The "Double Bottom technical analysis charting pattern" is a common and highly effective price reversal pattern in Forex Market. 

To create a double bottom pattern, price begins in a downtrend, stops, and then reverses trend. However, the reversal to the upside is short-term. Price breaks again to the downside only to stop again and reverse direction upwards. With the second bottom of the double bottom pattern, it is usually more bullish if the second low is higher than the first low.

Double Bottom Buy Signal

The signal to buy is given when the confirmation line is penetrated to the upside. The confirmation line is drawn across the top of the double bottom pattern 

Often, after price penetrates the confirmation line, price will retrace for a short time, sometimes back to the confirmation line. This retracement offers a second chance to get into the market long

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What is Double Top Strategy in Currency Forex Trading - forex trading courses nz

What is Double Top Strategy in Currency Forex Trading ~ forex trading courses nz

Double Top Strategy in Currency Trading

Forex trading now being very popular through out the world . Many investors like to trade in Forex than stock markets . But , Without proper basic knowledge , traders or investors can loss all their valuable money. So before investment in Forex Market, traders should learn few basic fundamentals & strategies to reduce risk . The "Double Top technical analysis charting pattern" is a common and highly effective price reversal pattern in Forex Market. 

Double Top Formation Components:-

First High: Bulls push prices upwards making new highs; however, these new highs are short lived and prices retreat.

Second High: Prices dont retreat for long because bulls make another run, making a similar high. Nevertheless, this is bearish, because bulls were unable to push prices higher; bears held their ground at the previous high level. The bears push prices back to support (Confirmation line); this is a pivotal moment - either bulls will make another push higher or bears will take control and push prices even lower, more than likely taking over for good.

Double Top Sell Signal:-
Sell when price closes below the confirmation line.

Note that traders expect a significant increase in volume to accompany the confirmation line break; if there is very little volume when price pierces the confirmation line, then the move downward is suspect. Small volume usually means weak support of price movement 

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