What's Double Tops Chart Patterns in XAUUSD?

Trading Gold Identify a Double Tops Trading Pattern in XAUUSD

The Best Trading Patterns Tutorial for Beginners - How to Identify & Trade Double Tops Chart Pattern

Gold Patterns for Day Trading - Trading XAUUSD Patterns Guide

This Double Tops patterns charts tutorial explains how to identify xauusd chart patterns - identifying xauusd chart patterns is the first step when it comes to learning how to trade with Double Tops xauusd chart patterns in XAUUSD.

Double Tops gold price patterns commonly form on XAUUSD charts and this chart pattern analysis tutorial explains how to trade & analyze xauusd charts using Double Tops gold trading chart patterns.

Double Top Trading Pattern

Double tops xauusd chart pattern is a reversal xauusd pattern which forms after an extended upward gold trend. As its name implies, this double top trading pattern formation is made up of two consecutive peaks which are roughly equal, with a moderate trough between.

This double top pattern formation is considered complete once gold price makes the second peak and then penetrates lowest point between the highs, called the neck line. The sell signal from this double top pattern formation occurs when the xauusd market breaks-out below neckline.

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

Summary:

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

Double Top Chart Pattern - What is Double Tops Chart Patterns in XAUUSD?

The double tops chart pattern look like an M Shape, the best reversal xauusd signal is where the second top is lower than the first one as shown below, this means that the reversal xauusd signal can be confirmed by drawing a downwards xauusd trend line as shown below. If a trader opens a sell signal the stop loss will be placed just above this downwards trend line.

M Shaped Double Tops Chart Pattern - What is Double Tops Chart Patterns in XAUUSD?