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Trading Book1

A double top and double bottom are reversal patterns that form at peaks and troughs respectively, with the asset reaching the same price level twice before reversing direction. A triple top occurs when an asset hits the same resistance level three times, while a triple bottom shows buyers taking control as the asset hits the same support level three times before breaking through resistance.

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Yahya Salman
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47K views

Trading Book1

A double top and double bottom are reversal patterns that form at peaks and troughs respectively, with the asset reaching the same price level twice before reversing direction. A triple top occurs when an asset hits the same resistance level three times, while a triple bottom shows buyers taking control as the asset hits the same support level three times before breaking through resistance.

Uploaded by

Yahya Salman
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Double Top

What Is a Double Top? A double top is an


extremely bearish technical reversal
pattern that forms after an asset reaches a
high price two consecutive times with a
moderate decline between the two highs. It
is confirmed once the asset's price falls
below a support level equal to the low
between the two prior highs.
Double Bottom

The double bottom pattern is a bullish


reversal pattern that occurs at the bottom of
a downtrend and signals that the sellers, who
were in control of the price action so far, are
losing momentum. The pattern resembles
the letter “W” due to the two-touched low
and a change in the trend direction from a
downtrend to an uptrend.
Tripl Top

The triple top pattern occurs when


the price of an asset creates three
peaks at nearly the same price level.
The area of the peaks is resistance.
The pullbacks between the peaks are
called the swing lows.
Tripl Bottom

2 Bottom 3 Bottom

1Bottom

A triple bottom is a visual pattern that


shows the buyers (bulls) taking control
of the price action from the sellers
(bears). A triple bottom is generally
seen as three roughly equal lows
bouncing off support followed by the
price action breaching resistance.

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