Double Tops are just that. We have a move to the upside; price hits resistance, it reverses to a short term level of support, it reverses to previous resistance, reverses again where we wait for a breakout through support.
Double Bottoms are exactly the inverse of Double Tops.
If we don’t get a breakout we may be looking at a similar pattern. A Head & Shoulders.
These behave in a similar fashion but they just take a little longer to form and they are traded in the same way.
Again, with extensive movements to the downside, we can see an Inverse Head & Shoulders.
Let’s take a look at some practical examples:
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CEO Valutrades Limited, Graeme Watkins is an FX and CFD market veteran with more than 10 years experience. Key roles include management, senior systems and controls, sales, project management and operations. Graeme has help significant roles for both brokerages and technology platforms.
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