stephenleachman
Education

DOUBLE TOPS & BOTTOMS (TREND REVERSAL)

FX:EURJPY   Euro Fx/Japanese Yen
136 1 16
Double tops and bottoms are trend reversal patterns they start
with a trend that pushes into resistance or support then retraces
After price retraces then the opposite party comes in and attempts
to push price back into the direction of the overall trend but with
no success in breaking the previous high or low. The double top is a
bearish reversal pattern and the double bottom is a bullish reversal
pattern.Once price breaks the neckline set by the swing high or low
you could anticipate a measured move from the top or bottom to the
neckline added to the breakout.

Conventional Way To Terad The Double Top Bearish Reversal:

snapshot

-----Breakout-----
(1) Wait for a clear Double Top to form.
(2) Sell a break of the neck swing low.
(3) Stop above the 50% retracement of top to neck. (this gives a 1-2 risk reward)
(4) Target Is the Distance Between The top to neck Added To The Breakout.

-----PullBack-----
(1) Wait for a clear Double Top to form.
(2) Wait for price to break and close below neck - swing low.
(3) Sell pullback at neckline.
(4) Stop above the 50% retracement of top to neck. (this gives a 1-2 risk reward)
(5) Target Is the Distance Between The top to neck Added To The Breakout.

Conventional Way To Terad The Double Bottom Bullish Reversal:

snapshot

-----Breakout-----
(1) Wait for a clear Double Bottom to form.
(2) Buy a break of the neck swing High.
(3) Stop below the 50% retracement of neck to bottom. (this gives a 1-2 risk reward)
(4) Target Is the Distance Between The bottom to neck Added To The Breakout.

-----PullBack-----
(1) Wait for a clear Double Bottom to form.
(2) Wait for price to break and close Above neck - swing high.
(3) Buy pullback at neckline.
(4) Stop below the 50% retracement of neck to bottom. (this gives a 1-2 risk reward)
(5) Target Is the Distance Between The top to neck Added To The Breakout.
Hehya! Thanks for your comprehensive charts and information. New trader here, so have saved to my home page screen for reference..cheers and thanx for your work....ron
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