Forex Up Trend Reversal Strategy - Double Tops Forex Trend Reversal Trading Strategy

Double Top Strategy

Double tops upwards trend reversal strategy is a reversal forex pattern which forms after an extended forex uptrend. As its name implies, this reversal strategy is made up of two consecutive peaks that are roughly equal, with a moderate trough between.

Double tops upwards trend reversal trading strategy is considered complete once price makes the second peak & then penetrates the lowest point between the highs, called the neck-line. The sell signal from this up trend reversal trading strategy occurs when the market breaks-out below the neckline.

In Forex, Double tops upwards trend reversal trading strategy is used as a early warning forex trading signal that a bullish upwards forex trend is about to reverse.

However, Double tops upward trend reversal trading strategy is only completed once the neck-line is broken and market moves below the neckline. Neckline is just another name for last support level formed on Forex trading chart.

Summary:

• Double tops upwards trend reversal strategy Forms after an extended move upward
• This Double tops upward trend reversal trading strategy formation indicates that there will be a reversal in market
• We sell when price breaks below the neckline: see below for explanation.

Forex Up Trend Reversal Strategy - Double Top Reversal Trading Strategy

The double top look like an M Shape, the best reversal signal is where the second top is lower than the first one as displayed on the example below, this means that the reversal forex signal can be confirmed by drawing a downward forex trend line as shown below.

Double Top Forex Trend Reversal Trading Strategies