What's Double Bottoms Patterns?
Trading Identify a Double Bottoms Pattern in XAU USD Trading
The Best Patterns Training Course for Beginners - How to Identify & Trade Double Bottoms Pattern
Patterns for Intraday Trading - Patterns Guide
This Double Bottoms trading patterns charts guide explains and describes how to identify xauusd setups - identifying chart patterns is the first step when it comes to learning how to trade with Double Bottoms chart patterns in Gold.
Double Bottoms trading price setups often form on XAUUSD charts & this chart pattern analysis guide explains and describes how to trade & analyze gold charts using Double Bottoms trading setups.
Double Bottom Pattern
Double bottoms pattern formation is a reversal gold pattern formation which forms after an extended downwards trend. Double bottoms chart pattern is made up of two consecutive troughs that are roughly equal, with a moderate peak in between.
This double bottoms pattern setup formation is considered complete once price makes the second low & then penetrates highest point between the lows, referred to as the neck line. The buy indication from this bottoming out signal occurs when the market breaks out the neckline to the up side.
In XAU USD, this double bottoms setup formation is an early signal that the bearish Gold trend is about to turn & reverse. It's only considered complete/completed once the neckline is broken. In this double bottoms pattern formation setup formation the neck line is the resistance zone for price. Once this resistance is breached and broken the market will move upwards.
Summary:
- Double bottoms trading setup forms after an extended move downwards
- This Double bottoms chart pattern formation shows that there will be a reversal in the market
- We buy when price breaks-out above the neckline point/level as shown below in the explanation.
Double Bottom Pattern
The double bottom chart setup look like a W Shape, the best reversal gold signal is where the second market bottom is higher than the first one as pictured below, this means the reversal setup can be confirmed by drawing an upwards gold trend-line just as illustrated below. If one opens a buy signal the stop loss order will be placed just below this upwards trend-line.
W Shaped Double Bottoms Pattern
Learn More Tutorials and Topics:
- How to Set Demarker on Gold Chart in MT4 Platform Software
- How Can I Sign In to a XAUUSD Account?
- MT4 XAU/USD Transactions Tabs Window
- How to Set MACD Technical Indicator on Gold Chart in MT4 Platform Software
- How to Analyze/Interpret Relative Strength Index Indicator
- How to Modify Stop Loss Order on MT4 Trade Charts
