Trading Double Top & Double Bottoms CFD Strategies

A trader should wait for the cfds price to turn in the opposite direction after touching one of the cfd Bollinger bands before considering that a cfd reversal is happening.

Even better a trader should see the cfds price cross over the moving average.

Double Bottoms CFD Trend Reversals

A double bottom is a buy cfd trading signal set-up. Double tops forms when cfds price action penetrates the lower Bollinger band then rebounds forming the first cfds price low, then after a while another cfds price low is formed, and this time it is above the lower Bollinger band.

The second cfds price low must not be lower than the first one and it important is that the second cfds price low does not touch or penetrate the lower Bollinger band. This bullish cfds trading setup is confirmed when the cfds price action moves and closes above the middle band (simple moving average).

Double Bottoms - Bollinger Bands CFD Trend Reversals Trading Strategy Using Double Bottoms CFDs Chart Patterns

Double Tops CFD Trend Reversals

A double top is a sell cfd trading signal set-up. Double tops forms when cfds price action penetrates the upper Bollinger band then rebounds down forming the first cfds price high., then after a while another cfds price high is formed, and this time it's below the upper Bollinger band.

The second cfds price high must not be higher than the first one and it important is that the second cfds price high does not touch or penetrate the upper Bollinger band. This bearish cfds trading setup is confirmed when the cfds price action moves and closes below the middle band (simple moving average).

Double Tops - Bollinger Bands CFD Trend Reversals Trading Strategy Using Double Tops CFDs Chart Patterns