Trading Double Tops and Double Bottoms XAUUSD Strategies

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

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

Double Bottoms XAUUSD Trend Reversals

A double bottom is a buy xauusd signal setup. Double tops occurs when gold price action penetrates the lower Bollinger band then rebounds forming the first gold price low, then after a while another gold price low is formed, and this time it is above the lower Bollinger band.

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

Double Bottoms - Bollinger Bands XAUUSD Trend Reversals Trading Strategy Using Double Bottoms Gold Chart Patterns

Double Tops XAUUSD Trend Reversals

A double top is a sell xauusd signal setup. Double tops occurs when gold price action penetrates the upper Bollinger band then rebounds down forming the first gold price high., then after a while another gold price high is formed, and this time it is below the upper Bollinger band.

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

Double Tops - Bollinger Bands XAUUSD Trend Reversals Trading Strategy Using Double Tops Gold Chart Patterns