Forex reverse head and shoulders
Double Bottom Watch a video with a detailed description of the Double Bottom Chart Pattern. The Double Bottom technical analysis charting pattern is a common and highly effective price reversal pattern. To create a double bottom pattern, price forex reverse head and shoulders in a downtrend, stops, and then reverses trend. However, the reversal to the upside is short-term.
Price breaks again to the downside only to stop again and reverse direction upwards. With the second bottom of the double bottom pattern, it is usually more bullish if the second low is higher than the first low. Double Bottom Potential Buy Signal A potential buy signal is given when the confirmation line is penetrated to the upside. Often, after price penetrates the confirmation line, price will retrace for a short time, sometimes back to the confirmation line. This retracement offers a second chance to get into the market long. The Double Bottom reversal pattern is a heavily used charting reversal pattern. The information above is for informational and entertainment purposes only and does not constitute trading advice or a solicitation to buy or sell any stock, option, future, commodity, or forex product.
Past performance is not necessarily an indication of future performance. Support and Resistance For videos on Support and Resistance chart patterns, please see the Rectangle Chart Pattern Video and the Trendlines Chart Pattern Video. Support: Typically expected that prices should rise after touching support. Resistance: Generally expected that prices should fall after hitting resistance. If price breaks below support, then that support level can become the new resistance level.
If price breaks above support, then that resistance level can become the new support level. Support and Resistance are basic yet vitally important technical analysis tools. On every time frame, intra-day, daily, weekly, and monthly, Support and Resistance levels are focused in by traders. Knowledge of these levels could keep a trader on the correct side of the market.