Price is nicely moving in a channel and making higher highs.
Price is near Fib level and near the . If price breaks the then it should move till the next . However looking at recent I do not feel the price will move above the . However this a potential setup to go long if prices breaks the and to go short if price retraces.
Trading Double tops and Double bottoms is simple and profitable
It works on all time frames
Why it works?
They work because quite often traders wait for confirmation that a support or a is holding before they are willing to enter a trade.
After it has been accepted once (the first touch), more traders can easily identify the level and are willing to commit their capital (the second touch)
To Trade you will need:
2. Candelstick Patterns
3. A Crooked Shoulder
I am considering that you guys know what is support and reistance and candel stick patterns. Double Top's and Double Bottoms are very effective near support and resistane areas. I'll explain what a crooked shoulder is:
What is a crooked shoulder?
This helps make trading double tops and double bottoms higher probablity
We are trading on the high premise that the second touch is where more sellers (sellers in this example) are eager to jump on the move
For this reason we need to see a Lower second touch for a
This suggest we may see stronger reaction for the second touch.
When to enter the trader:
If you see couple of candel or pin bars or candels at the second touch. basically you should hav confirmation that price is going to reverse.
Stop Loss: should be just above the first touch
Take Profit or 1st Target should be just above the center of V
Backtesting is one of the key factor to become the best trader
***For Educational Purposes only***
In all my charts:
Orange Lines - Monthly Support/Resistance Lines
Blue Lines - Weekly Support and Resistance Lines
Fluorescent Green Lines are - Daily Support and resistance line. (not plotted on this chart)
You can also refer to below chart and read the description for more information.