Tops and Bottoms

Tops and bottoms are commonly used to signal trend reversals. The name is derived because the candlesticks form a pattern similar to the letter “W” (double bottom) or “M” (double top). These patterns develop in period that last over 1 day. Double Top This pattern appears when a currency pair on a rising trend faces resistance. Upon resistance the price falls to a support level, which becomes the neckline. The price then returns back to the resistance level. After failing to break the resistance level a second time the pair falls back down. At the neckline price breaks down into a new downward trend. ../../trading-courses/technical/head-and-shoulders) ../../trading-courses/technical/triangles) - Head & Shoulders - Tops & Bottoms - Triangles - Rectangles