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Bollinger Bands Forex Trend Reversals - Trading Double Tops and Double Bottoms Forex Strategies

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

 

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

 

Double Bottoms Forex Trend Reversals

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

 

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

 

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

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

 

Double Tops Forex Trend Reversals

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

 

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

 

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

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

 

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