A Double Top is a reversal pattern that forms after extension movement. TOP or "peak" is a peak that is formed when the price hits a certain level that can not be penetrated.
After touching this level, the price will bounce a bit, but then returned to the peak levels tested again. If the price bounces from that level again, then you have a DOUBLE TOP
In the chart above you can see that the two peaks or "peak" occurs twice.
Notice how the second peak is not able to penetrate the previous peak height. It is a strong sign that the reversal will occur which tells us that buying pressure has been completed completed.
With double top, we will order our entry below the neck because we anticipate the Reversal of the uptrend.
See the chart above, you can see that price broke through the neckline (neck) and plunge down. Remember that double tops or double top is a reversal of trend formation so you will find it after a Strong uptrend.
You will also notice that the price falls more or less the same height as a double top formation. It's worth remembering because it would be useful to set a Profit target (Take Profit).
DOUBLE BUTTOM
The lower part of the double (double bottom) is also a trend reversal formation, but this time we are looking to go buy instead of sell. These formations occur after a downtrend when the two bottom has been formed
You can see from the graph above that after the previous trend, forming two valleys because the price can not go below a certain level.
Notice how the bottom two are not able to significantly break the bottom of the first. It is a sign that selling pressure is over, and that a reversal is imminent.
Price broke his neck and flying high.
See how the soaring price of almost the same length as the formation of a double bottom?
Remember, like a double top, Double bottom reversal formations as well.
Now we can see what will happen when condition is come on your chart so what you will do ..??
Just like this bout Double Chart Patern topic wish wil give you more benefid
