Double Top I Double Bottom I How to Trader Charts I Best Online Trading Course for Day Traders скачать в хорошем качестве

Double Top I Double Bottom I How to Trader Charts I Best Online Trading Course for Day Traders

Double Top A double top is a reversal pattern that is formed after there is an extended move up. The "tops are peaks which are formed when the price hits a certain level that can't be broken. After hitting this level, the price will bounce off it slightly, but then return back to test the level again. If the price bounces off of that level again, then you have a DOUBLE top! In the chart above you can see that two peaks or "tops" were formed after a strong move up. Notice how the second top was not able to break the high of the first top. This is a strong sign that a reversal is going to occur because it is telling us that the buying pressure is just about finished. With the double top, we would place our entry order below the neckline because we are anticipating a reversal of the uptrend. Looking at the chart you can see that the price breaks the neckline and makes a nice move down. Remember that double tops arc a trend reversal formation so you'll want to look for these after there is a strong uptrend. You'll also notice that the drop is approximately the same height as the double top formation. Keep that in mind because that'll be useful in setting profit targets. Double Bottom The double bottom is also a trend. reversal formation. but this time we are looking lo go long instead of short. These formations occur after extended downtrends when two valleys or "bottoms" have been formed. You can see from the chart above that after the previous downtrend, the price formed two valleys because it wasn't able to go below a certain level. Notice how the second bottom wasn't able to significantly break the first bottom. This is a sign that the selling pressure is about finished, and that a reversal is about to occur. The price broke the neckline and made a nice move up. See how the price jumped by almost the same height as that of the double bottom formation? Remember, just like double tops, double bottoms are also trend reversal formations. You'll want to look for these after a strong downtrend. For more please visit https://www.OptionTradersNetwork.com or read the Free Ebook How to Make Money Trading Options at https://www.optiontradersnetwork.com/... DISCLAIMER: Stocks and options trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the stocks and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell stocks or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in this report. The past performance of any trading system or methodology is not necessarily indicative of future results. All trades, patterns, charts, systems, etc., discussed in this report are for illustrative purposes only and not to be construed as specific advisory recommendations. Information contained in this correspondence is intended for informational purposes only and was obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.