Bollinger Band Trend Reversals - Trading Double Tops & Double Bottoms Stock Strategies

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

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

Double Bottoms Trend Reversals

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

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

Double Bottoms - Bollinger Band Trend Reversals Trade Strategy Using Double Bottoms Pattern

Double Tops Trend Reversals

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

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

Double Tops - Bollinger Band Trend Reversals Trade Strategy Using Double Tops Pattern