How to Find Legitimate Double Tops & Double Bottoms
Hey Guys!
I just wanted to post a quick tutorial on how to find legitimate double tops and bottoms.
In this lesson, I explain the 4 rules that a double top/bottom must abide for it to be legitimate.
So for example: For a legitimate double bottom:
#1 The 2nd bottom's price must reach the 1st bottom's wick low price level.
#2 The 2nd bottom's price cannot close past the 1st bottom's wick low price level.
#3 There must at least be a 10 candle range between the the bottoms. (including the 2 bottom's candles)
#4 The prior trend must be in the opposing direction. (which is down in the case of a double bottom)
That's it! I hope this helps!
Have a great day!
Ken
I just wanted to post a quick tutorial on how to find legitimate double tops and bottoms.
In this lesson, I explain the 4 rules that a double top/bottom must abide for it to be legitimate.
So for example: For a legitimate double bottom:
#1 The 2nd bottom's price must reach the 1st bottom's wick low price level.
#2 The 2nd bottom's price cannot close past the 1st bottom's wick low price level.
#3 There must at least be a 10 candle range between the the bottoms. (including the 2 bottom's candles)
#4 The prior trend must be in the opposing direction. (which is down in the case of a double bottom)
That's it! I hope this helps!
Have a great day!
Ken
Forex Trader/Forex Trading Education/Weekly Forex Forecasts and Midweek Forex Analysis
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