best forex trading strategy for Double Bottoms

best forex trading strategy for Double Bottoms Published by bestsignals on October 27, 2018 Double Bottoms and best trading strategy Downward price trend The short-term price trend leading to a double bottom is down. Two valleys Look for two valleys that bottom near the same price. Near means within about 5 percent. The bottoms should look as if they are at the same price. Valley separation The time between bottoms varies, but two to seven weeks results in the best performance. Peak The peak between the two bottoms should measure at least 10 percent, but exceptions are numerous, making this guideline almost useless. Confirmation Price must close above the highest peak between the two bottoms. If price closes below the lowest bottom before confirmation, it invalidates the double bottom. A double bottom is a twin valley pattern with valleys that bottom near the same price. The double bottom acts as a bullish reversal of the downward price trend. The time between bottoms and the price variation is less important than confirmation. An unconfirmed double bottom is just squiggles on a price chart Reversal chart patterns, such as double bottoms, must have something to reverse. If the price trend leading down to the double bottom is shallow, do not expect a large rise after confirmation. best trading strategy Trade with market trend To improve your odds, trade this bullish pattern in a bull market. Measure rule Compute the height from the highest high between the two bottoms to the lower of the two bottoms then add the difference to the highest high. The result is the target price.