How Do I Analyze Double Tops Chart Pattern Reversal Chart Pattern?

How Do You Trade Double Tops Reversal Chart Pattern?

Double Top Strategy

Double tops upwards Forex Trend Reversal strategy is a reversal forex pattern which forms after an extended upward trend. As its name implies, this reversal strategy is made up of 2 consecutive peaks that are roughly equal, with a moderate trough between.

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

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

However, Double tops upward Forex 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 Forex Trend Reversal strategy Forms after an extended move upward
• This Double tops upward Forex Trend Reversal trading strategy formation indicates that there will be a reversal in forex trend
• We sell when FX price breaks below the neck line point: see below for explanation.

Upwards Forex Trend Reversal Trading Strategy

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

Double Top Forex Trend Reversal Signal Trading Strategies

How Do You Interpret Double Tops Chart Pattern Reversal Chart Pattern?