فوركس ساتو

DOUBLE TOPS / BOTTOMS
A double top/bottom is simply another end of trend formation that
often occurs. It looks like the letter “M” at the end of an up trend, or
like the letter “W” at the end of a down trend. Usually the middle of
the formation you breach the trend line, then it goes back up and
comes very close to the previous high, more or less by a few pips.
The peaks are very close to be at the same level.
This happens in all time frames. EUR/USD shows several excellent
FOREX Surfing Draft .forex sato
double tops/bottoms on the Daily candle charts.

The following chart shows you a double bottom on a 5 min
EUR/USD chart. It’s not a text book perfect example (most often
things don’t appear absolutely perfect) but you will see that it is a
double bottom non the less.
As you can see on this chart, your micro trend ended on this “double
bottom”, and you should have been stopped out at the point shown.
FOREX Surfing Draft .forex sato
In such a situation you could always place an entry order at the peak
in the middle of the double bottom for a conservative trade of say 20
pips. If the market doesn’t go in that direction then your entry order
won’t get triggered and you won’t lose anything (a “dud”), but if it
is in fact a double bottom (remember, while it’s in progress it could
form into something else) then you’ll catch the trade for a small
profit (just go for small pips on such a trade). It may later turn out
have other trading opportunities, so keep your eyes on it.
forex sato