Bollinger Bands Trend Reversals - Trading Double Top & Double Bottom Forex Strategies

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

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

Double Bottoms Trend Reversals

A double bottom is a buy signal setup. Double top occurs when price action penetrates the lower Bollinger band then rebounds forming the first price low, then after a while another price low is formed, and this time it is above the lower Bollinger band.

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

Double Bottom - Bollinger Bands Trend Reversals Trading Strategy Using Double Bottom Patterns

Double Tops Trend Reversals

A double top is a sell signal setup. Double top occurs when price action penetrates the upper Bollinger band then rebounds down forming the first price high., then after a while another price high is formed, and this time it is below the upper Bollinger band.

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

Double Tops - Bollinger Bands Trend Reversals Strategy Using Double Top Patterns