Trading Double Top and Double Bottom Stock Trading Strategies

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

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

Double Bottom Stocks Trend Reversals

A double bottoms is a buy stock trading signal setup. Double top occurs when stocks price action penetrates the lower Bollinger band then rebounds forming the first stocks price low, then after a while another stocks price low is formed, & this time it's above the lower Bollinger band.

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

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

Double Top Stocks Trend Reversals

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

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

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