Double Top Strategy in Currency 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 Top technical analysis charting pattern" is a common and highly effective price reversal pattern in Forex Market. Double Top Formation Components:-
Second High: Prices don't retreat for long because bulls make another run, making a similar high. Nevertheless, this is bearish, because bulls were unable to push prices higher; bears held their ground at the previous high level. The bears push prices back to support (Confirmation line); this is a pivotal moment - either bulls will make another push higher or bears will take control and push prices even lower, more than likely taking over for good.
Double Top Sell Signal:-
Sell when price closes below the confirmation line.
Note that traders expect a significant increase in volume to accompany the confirmation line break; if there is very little volume when price pierces the confirmation line, then the move downward is suspect. Small volume usually means weak support of price movement
