A Journey to Master Forex Trading (FX Trader from Singapore)

Saturday, December 6, 2008

Reversal Chart Patterns: Triple and Double Tops and Bottoms

Reprinted from: http://www.alpari.co.uk/en/market-analysis-guide/technical-analysis/double-and-triple-tops-and-bottoms.html

Reversal Chart Patterns: Triple and Double Tops and Bottoms

Other important reversal patterns are:

  • "Triple Top"
  • "Triple Bottom"
  • "Double Top"
  • "Double Bottom"

Here are some sketch examples of price movements with "Triple Top" and "Triple Bottom" patterns:

Here is the "Triple Bottom" pattern:

"Double Top" and "Double Bottom" patterns are seen on the charts more frequently:

"Double Top" and "Double Bottom" are weaker reversal signals than "Triple Top / Bottom" and "Head and Shoulders". Double Top patterns looks like this:

There are a lot of false signals among Triple and especially Double Tops and Bottoms, so it is important to make a parallel analysis of market volume, price and oscillators convergence / divergence.

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