Pattern: Double Bottom and Double Top

Pattern: Double Bottom and Double Top

Pattern: Double Bottom and Double Top are already more common than for example head and shoulders figure.

The advantage of this figure is that it can be seen on any timeframe and should be used at entries.

This figure shows that: the price will not go any further.

You can open a deal right on the second peak, but this is possible only if you use this this strategy, only it shows corrective movements and rollbacks well.

Or, just from a local minimum, as shown in the figure below.

Read also - Shape: Head and Shoulders

The price poked for the first time - bounced off the resistance level, then we see that the price is creeping again if it bounces a second time - it will not be able to break through the strong level, which means the price will not go any further and you can sell on the next pullback!

It always works.

Here is an example of a Double Top shape:

double top

double top model

Here is a screenshot of the Double Bottom:

Double bottom

Double bottom model

With deals, the figure has a double bottom, everything is the same as with a double top, only in reverse.

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