Double Top or Double Bottom – What is a Double Top or Bottom?

What is a Double Top or Bottom?

Definition of Double Top or Bottom: These are well-known Forex trading patterns that consist of lower and upper limits which have been touched two times, but are never violated. Moreover, when the currency comes out of the range of trading, the association plays an important role. It is a violated reversal pattern consisting of two different tops of nearly similar heights. In the neckline, you will find a support line. A resistance line joins the upper parts. Generally, a break in the support line indicates a fall in the size to the cost. On the contrary, double bottom is precisely a contradictory of the top model. A careful Forex trader following this trend can place long and short orders for anticipating a main move and gain from it.