DOUBLE TOP
*Double top is a pattern shows that market is going to follow next downtrend, double top chart pattern another name is (M) pattern also.
*As I have shown in my chart below how double top perform, first you will see the first top then little bearish and it will make Higher low then it will make second top higher then last top after some days but you can see some mini (1hr,2hr) time frame double top.
*In double top price make new higher high or equal high but indicator (MACD) and (RSI) make lower high this is bearish divergence sign.
*This divergence shows a bulls loss the power make a new high in price action but in indicator makes a lower high it's the sign of reversal trend.
*If the candle next to low break shown at second top is the perfect time to take entry.
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DOUBLE BOTTOM *Double bottom pattern shows that market is going to follow next uptrend, Double bottom chart pattern another name is (w) pattern. *As I have shown below in my chart how double bottom perform, after the double bottom there will be a lower low then there will be a second bottom lower or same like first bottom but with bullish divergence as shown in chart below, *You can see many double bottom in that range but you have to make sure that divergence (MACD) & (RSI) is bullish with volume in it. *The divergence of bullish in double bottom make a reversal trend. *If candle confirm a double bottom with bullish divergence then you have to enter the position in next candle.  |
