Trading Double Tops and Double Bottoms Gold Trading Strategies

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

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

Double Bottoms XAUUSD Trend Reversals

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

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

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

Double Tops XAUUSD Trend Reversals

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

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

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