22 Jul

Double top and double bottom

Today afternoon I make really great and delicious cup of green tea and thought about a good, old, price action. BTW, do you like drinking good tea? I love it. Drinking of tea makes my concentracion better and helps me with trading.
One of the instruments there’s a formation “double bottom and a double top.”   How to spot them and how to work as efficiently as possible? In today’s part series of instrumentech technical analysis, we’ll show how in the chart to know and to do business with double tops or double bottoms.  This is the so-called “price action formation” in the charts.  That means, for identification double tops or bottoms is not needed any indicator.  Formation is possible to observe the graphs with any time-frame trading (bottoms and peaks are reflects the current psychological situation on the market.)
Market is carried out by a small correction prices.  Then he had tried again to the previous high (the new top) break through, but it isn’t happening  and headed toward down.  The market, or traders didn’t want speculate on further growth.  By the following shall be created formation double top of it. Double bottom is analogy of inverted double top of it.  The same conditions as the case of double top apply on a double bottom (the same monetary a few, the same timeframe, the same period).   on the graph we according to the same conditions identified double bottom.

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