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ForeCastle

  1. How to trade Double-Top or Double-Bottom formation

    by , 09-22-2014 at 11:46 PM
    Talking Points:

    • The Double-Top and Double-Bottom formation show multiple tests of support (or resistance) at a particular price level.
    • Traders can look to trade subsequent tests of these price levels.

    The Double-Top/Double-Bottom

    The Double-Top or Double-Bottom formation will occur when two separate ‘moves’ bounce from a support or resistance level. This highlights that level as being especially strong, so that the next time price encounters this, ...
  2. How to Trade a Double Bottom in Forex

    by , 09-08-2014 at 01:13 PM
    Talking Points:

    • A Double Bottom is formed when price tests a previous low and bounces.
    • Buy orders can be placed just above previous low.
    • Limit orders can be set at most recent swing high, stop set 33% of limit distance.

    With the Forex market showing low levels of volatility, there is a greater likelihood that prior support and resistance levels will hold when price tests those levels again. Because of this, trading a range bound strategy might yield better results, ...