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SIMPLE TRADING Book

A double top and triple top are bearish patterns that occur after an asset reaches a high price two or three consecutive times, indicating the uptrend may be reversing. A double bottom and triple bottom are bullish patterns that occur after an asset reaches a low price two or three consecutive times, indicating the downtrend may be reversing. The patterns resemble W's or M's and confirm when the price breaks above or below identified support and resistance levels.

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Mostafa Sharaf
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1M views25 pages

SIMPLE TRADING Book

A double top and triple top are bearish patterns that occur after an asset reaches a high price two or three consecutive times, indicating the uptrend may be reversing. A double bottom and triple bottom are bullish patterns that occur after an asset reaches a low price two or three consecutive times, indicating the downtrend may be reversing. The patterns resemble W's or M's and confirm when the price breaks above or below identified support and resistance levels.

Uploaded by

Mostafa Sharaf
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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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