How Do I Trade Downwards Trendline Reversal Signals Combined with Double Bottoms Reversal Chart Patterns Setups

Downwards Trend Reversal XAUUSD Signals and Double Bottoms Reversal Chart Patterns Strategy

Down trend Reversal

When price breaks downwards trend line (resistance) the market then will move up

Down-ward Trend Line - Trend Reversal Signal

This signal is considered to be complete with the formation of a higher low or higher high. This reversal trend line break also can be combined with the double bottom reversal setups as described on the example illustrated below:

Combining Downwards Trend Reversal XAUUSD Signals with Double Bottoms Reversal Setup Patterns

A good reversal trade setup to combine trend line break reversal strategy with is the double bottom patterns - Double Bottom Reversal Chart setups Guide.

Double bottoms reversal patterns setup should already have formed before the down trend break reversal signal. Because the double bottoms are also reversal signals, then combining these two reversal strategies will give the trader a good probability of avoiding a whipsaw.

In the above chart example these double bottoms setups can be confirmed to have formed even before the trendline reversal trade signal popped up.

Example of Downward Direction Reversal - the Double bottoms reversal chart pattern had already formed before down trend line break reversal signal appeared on chart.

Combining Downwards Trend Reversal XAUUSD Signals with Double Bottoms Reversal Chart Setup Patterns