| The Forex market can be hard to understand if you | | | | peaks, this is the support line. |
| don't have the right information to work with. Many | | | | The double top only last until the price falls below the |
| companies offer different types of tools to help you | | | | support line. These DTs may not happen in just a |
| to make informative choices if you can understand | | | | few seconds. Often they take days or weeks to |
| the tools themselves. Two of these tools are the | | | | form properly. There are many who claim that the |
| double top (DT) and the double down (DD) patterns. | | | | double top is not a valid signal as the market is |
| Are you looking to predict how prices will change on | | | | random. Charts completed with this pattern would |
| the Forex currency market? You may have tried out | | | | say otherwise. The DT pattern happens too regularly |
| some of the graphing features for price movement. | | | | to be discounted as random. |
| Once chart pattern you may not have explored is | | | | A double bottom is obviously the opposite of the |
| the double top. A reversal chart pattern is another | | | | double top. When the price falls to a certain point and |
| name for the DT. This pattern happens when the | | | | then rebounds and falls again, this is the beginning of |
| graph shows extended move in the upward position | | | | the DB. The same rule applies and there must be a |
| and you find two peaks or tops displayed. | | | | pair of bottom peaks for it to be called a double |
| What this means to you is that the price has peaked | | | | bottom. |
| and met with resistance so it falls a little and then | | | | When the double top is happening, you want to buy |
| tops again. The tops are usually the highest point the | | | | when the price is at the support line and sell at the |
| price is going to do for a period. The DT technically | | | | peak. When the double bottom is happening, you |
| happens when the peaks (two) happen twice in a | | | | want to buy when the price is below the bottom |
| row. If you drew a line between the peaks, that line | | | | peak and sell at the support line. |
| tells you the resistance level of the price. How high | | | | With this tool, you can take advantage of the Forex |
| the price will go before the price pops back down | | | | market and increase how well you do. Try it and see |
| again. If you draw a line at the lower part of the | | | | how it works for you. |