Double Top
This formation (also known as "M") occurs in the final stage of the long- or medium-term Price Increases and promises to reverse the trend. Formation is determined by two price peaks at the same level (green line) separated by a distinct decreases in prices. The turnover volume is often the largest when setting the first peak. The sale signal is generated after breaking below the bottom price (red line) generated between two peaks and must be accompanied by a marked increase in the volume. Sometimes, after breaking, we deal with a Bull trap (yellow line).
Double Bottom
This formation (also known as "W") occurs in the
final stage of the long- or medium-term price decrease and promises to reverse the
trend. Formation is determined by two price bottoms (red line) at the same level separated by a distinct increase in prices. The turnover volume is often the
largest when setting the first bottom. The buy signal is generated after breaking above
the price top (green line) generated between two bottoms and must be accompanied by a marked increase in the
volume. Sometimes, after breaking, we deal with a Bear trap (yellow line).
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