How Can I Differentiate a Double Bottom from a Double Top?

How to Identify and Trade Double Bottoms Bitcoin Chart Pattern and Double Tops Bitcoin Chart Pattern

A double tops bitcoin trading pattern has an M shape and it occurs at a market top hence its name double top cryptocurrency chart pattern and it signals a bearish bitcoin trading price reversal in the btcusd trading market. Once a double top cryptocurrency chart pattern is confirmed then the btcusd trading market will be considered to be bearish, therefore a double top is bearish.

A double bottoms bitcoin trading chart pattern has a W shape and it occurs at a market bottom hence its name double bottom cryptocurrency chart pattern and it signals a bullish bitcoin trading price reversal in the btcusd trading market. Once a double bottom cryptocurrency chart pattern is confirmed then the btcusd market will be considered to be bullish, therefore a double bottoms is bullish.

To identify double top and double bottoms cryptocurrency chart patterns the examples below explain the 2 bitcoin trading patterns:

Double Top BTCUSD Chart Pattern

Double tops cryptocurrency chart pattern is a reversal cryptocurrency pattern that forms after an extended upward cryptocurrency trend. As its name implies, this double tops cryptocurrency pattern formation is made up of 2 consecutive peaks that are roughly equal, with a moderate trough between.

This double tops cryptocurrency pattern formation is considered complete once bitcoin trading price makes second peak & then penetrates lowest point between highs, called the neckline. The sell cryptocurrency signal from this double top cryptocurrency pattern formation occurs when the btcusd trading market breaks below the neck-line.

In Bitcoin, this double tops cryptocurrency pattern formation is used as a early warning signal that a bullish Bitcoin trend is about to reverse. However, double top cryptocurrency pattern is only confirmed once the neck line is broken and the btcusd trading market moves below neckline. Neckline is just another name for the last support level formed on the Crypto chart.

Summary:

• Double tops bitcoin trading pattern forms after an extended move upwards
• This double tops cryptocurrency pattern formation indicates that there will be a reversal in btcusd trading market
• We sell when bitcoin price breaks below the neck line point: see below for explanation.

Double Top Bitcoin Pattern - How Can I Differentiate a Double Bottoms from a Double Top?

Double Bottom Bitcoin Chart Pattern

Double bottom cryptocurrency chart pattern is a reversal bitcoin pattern that forms after an extended downwards cryptocurrency trend. Double bottom cryptocurrency chart pattern is made up of 2 consecutive troughs that are roughly equal, with a moderate peak between.

This double bottom cryptocurrency pattern formation is considered complete once bitcoin trading price makes second low & then penetrates the highest point between lows, known as the neckline. The buy indication from this bottoming out signal occurs when the btcusd trading market breaks the neck line to the upside.

In Bitcoin, this double bottom cryptocurrency pattern formation is an early warning trading signal that the bearish Bitcoin trend is about to reverse. It's only considered complete/confirmed once the neck line is broken. In this double bottoms cryptocurrency pattern formation the neck line is the resistance level for the bitcoin price. Once this resistance is broken the btcusd trading market will move up.

Summary:

• Double bottom bitcoin trading pattern forms after an extended move downwards
• This Double bottom cryptocurrency pattern formation indicates that there will be a reversal in btcusd trading market
• We buy when bitcoin price breaks above the neck line point: see below for explanation.

How Can I Differentiate a Double Bottom from a Double Tops?