Double Bottom Chart Pattern in Forex Trading
Forex trading now being very popular through out the world . Many investors like to trade in Forex than stock markets . But , Without proper basic knowledge , traders or investors can loss all their valuable money. So before investment in Forex Market, traders should learn few basic fundamentals & strategies to reduce risk . The "Double Bottom technical analysis charting pattern" is a common and highly effective price reversal pattern in Forex Market.
To create a double bottom pattern, price begins in a downtrend, stops, and then reverses trend. However, the reversal to the upside is short-term. Price breaks again to the downside only to stop again and reverse direction upwards. With the second bottom of the double bottom pattern, it is usually more bullish if the second low is higher than the first low.
Double Bottom Buy Signal
The signal to buy is given when the confirmation line is penetrated to the upside. The confirmation line is drawn across the top of the double bottom pattern
Often, after price penetrates the confirmation line, price will retrace for a short time, sometimes back to the confirmation line. This retracement offers a second chance to get into the market long
