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Simple Trading Book1

The document describes four technical reversal patterns in trading: double top, double bottom, triple top, and triple bottom. A double top indicates a bearish reversal after two highs, while a double bottom signals a bullish reversal at the end of a downtrend. Triple top and triple bottom patterns represent resistance and support levels, respectively, with triple bottom indicating a shift in control from sellers to buyers.

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539 views25 pages

Simple Trading Book1

The document describes four technical reversal patterns in trading: double top, double bottom, triple top, and triple bottom. A double top indicates a bearish reversal after two highs, while a double bottom signals a bullish reversal at the end of a downtrend. Triple top and triple bottom patterns represent resistance and support levels, respectively, with triple bottom indicating a shift in control from sellers to buyers.

Uploaded by

tereraishemahupa938
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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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

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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