One pattern of price movements that is popular and often happens in reality is the Double Top pattern and the Double Bottom pattern. This proves that the pattern of market price movements can be repeated and not always random. The Double Bottom pattern and the Double Top pattern illustrate market sentiment towards a range of price levels that are considered extreme. That is, the Buyer will look for an extreme low point to start buying, or the Seller lurks the highest point to sell.
The theory sounds easy, but we must first explore why Double Bottom or Double Top price patterns appear on charts, and how to prepare trading plans once the two price patterns are formed.
First, from observing price movements on a chart, you can find price patterns with displays such as the letter "M" or "W". At first glance, such price patterns are quite common in a variety of Major Pairs at low or high timeframes.
Simply put, price movements such as the letter "M" represent Double Top price patterns because of the characteristics on both peaks. Meanwhile, when prices form the letter "W", it means you have found Double Top price patterns.
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