Trading Double Top & Double Bottoms Oil Strategies

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

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

Double Bottoms Trend Reversals

A double bottom is a buy oil signal set-up. Double top forms when crude price action penetrates the lower Bollinger band then rebounds forming the first crude price low, then after a while another price low is formed, and this time it's 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 crude trading setup is confirmed when the crude price action moves and closes above the middle band (simple moving average).

Double Bottom - Bollinger Bands Trend Reversals Strategy Using Double Bottoms Chart Pattern Setups

Double Tops Trend Reversals

A double top is a sell signal set-up. Double top forms when crude price action penetrates the upper Bollinger band then rebounds down forming the first crude 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 crude trading setup is confirmed when the crude price action moves and closes below the middle band (simple moving average).

Double Tops - Bollinger Bands Trend Reversals Strategy Using Double Tops Chart Pattern Setups