Double Top and Double Bottom Strategies

One should wait out for the price to turn in the opposite direction after touching one of the Bollinger band before considering that a reversal is happening.

Even better a gold trader should see the price cross-over the moving average MA.

Double Bottom Trend Reversals

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

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

Double Bottom - Bollinger Band Trend Reversals Strategy Using Double Bottoms Setups

Double Top Trend Reversals

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

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

Double Top - Bollinger Band Trend Reversals Strategy Using Double Tops Setups

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