Trading Double Top & Double Bottoms CFD Strategies

A trader should wait for the cfd price to turn in the opposite direction after touching one of the cfd Bollinger bands before considering that a cfd reversal is happening.

Even better a trader should see the cfd price cross over the moving average.

Double Bottoms CFD Trend Reversals

A double bottom is a buy signal set-up. Double top forms when price action penetrates the lower Bollinger band then rebounds forming the first cfd price low, then after a while another cfd price low is formed, and this time it is above the lower Bollinger band.

The second cfd price low must not be lower than the first one and it important is that the second cfd price low does not touch or penetrate the lower Bollinger band. This bullish cfds setup is confirmed when price action moves & closes above the middle band (simple moving average).

Double Bottoms - Bollinger Bands CFD Trend Reversals Trading Strategy Using Double Bottoms Patterns

Double Tops CFD Trend Reversals

A double top is a sell signal set-up. Double top forms when price action penetrates the upper Bollinger band then rebounds down forming the first cfd price high., then after a while another cfd price high is formed, and this time it's below the upper Bollinger band.

The second cfd price high must not be higher than the first one and it important is that the second cfd price high does not touch or penetrate the upper Bollinger band. This bearish cfds trading setup is confirmed when price action moves & closes below the middle band (simple moving average).

Double Tops - Bollinger Bands CFD Trend Reversals Strategy Using Double Tops Patterns