Characteristics and common types Double Bottom is a type of price reversal pattern. The pattern is shaped like a W with 2 deep bottoms of equal prices and a top in the middle. It often appears at the end of a downtrend. It is a warning signal to investors that prices will rise in the future.
How to trade with the double bottom pattern?
Here’s how to trade Forex most effectively and profitably with the Double Bottom pattern. You can open an order when the Double Bottom pattern appears as follows: + Entry Point: When the candlestick which breaks out of the resistance level of this pattern is completed. + Stop-Loss: At the right bottom of the pattern.
What is the safest entry point with a double bottom pattern?
The safest entry point with a Double Bottom pattern is the retest of the price after breaking out. Requirements: A long expiration time (If you use the 5-minute Japanese candlestick chart, the expiration time for a binary options order should be between 30 and 45 minutes.) How to open an order.
Do retail traders play double tops/bottoms?
Many retail traders play double tops/bottoms, and, knowing this, dealers and institutional traders love to exploit the retail traders' behavior of exiting early, forcing the weak hands out of the trade before price changes direction.
